Buy Asian Paints; target of Rs 1283: Geojit Financial Services

It seems that nationwide lockdown has not much impacted the fertilizer sector. In May 2020, the Indian Fertiliser industry has witness sales growth of 25% to 5 million tonnes as compared to 4 million tonnes in the same month last year.  Coromandel International and Chambal Fertilisers have seen major sales growth in the sector. The research firm Prabhudas Lilladher is bullish on 5 stocks in the sector and among that they expect stock Insecticides India may see the upside of 82 percent, report dated June 09, 2020.

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26 Aug, 2025 12:21

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Geojit Financial Services' research report on Asian Paints

In Q3FY18, revenue grew by 10.6% YoY to Rs 4,267cr (below estimate) on account of subdued volume growth of 6.5%. Management stated that extended monsoon in southern part coupled with split in festival demand between Q2 & Q3 impacted the topline growth. In the International operations, Units in Nepal, Bangladesh, Oman and Bahrain continue to stay on the growth trajectory.

Outlook

Strong presence in decorative paint and cost control initiatives to contain pressure on inflating raw material price will improve margins and profitability. We roll over our valuation to FY20E EPS and upgrade our rating to Buy with a target price of Rs 1,283, based on a P/E of 42x FY20E earnings.

For all recommendations report, click here

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