Avoid Asian Paints, says Mehraboon Irani

Mehraboon Irani of Nirmal Bang Securities told CNBC-TV18, "We have had a sell call on Asian Paints for over two quarters. Around Rs 4800 was the price where we said it is time to book profit. It was our favourite stock for quite sometime and I will also state that despite the numbers not being good the fact is we may not see too much of selling. The reason is that investors in Asian paints don't sell stocks in a hurry especially when you don't have too many thing to buy in this market."

He further added, "Whenever you have an economic upturn, Asian Paints also will start moving up one fine day, but relatively it will not do very well because people will have more investment opportunities in the market. Right now not many opportunities, but investors are just not selling Asian Paints."

"At the present price putting an incremental money is not too much of money sense because the fact is you are not going to make too much of money from here in terms of percentage returns on your incremental money which you have put in. So Asian Paints continue to avoid despite the fact that it is a great company, good cash flow, but at the present price, at the valuation at which it has, I don't see money being made," Irani said.