Buy Asian Paints; target of Rs 2275: Sharekhan

Sharekhan is bullish on Asian Paints has recommended buy rating on the stock with a target price of Rs 2275 in its research report dated September 04, 2020.

Broker Research

September 07, 2020 / 19:38 IST

26 Aug, 2025 12:21

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Sharekhan's research repor on Asian Paints

Construction and painting activities have re-gained momentum especially in the tier III/IV towns. Further there is an emerging trend of consumer shifting to better quality paints (including puttys, distempers and emulsions) in the rural market. Asian Paints (APL), a leading player in the decorative paints segment, will benefit from the rural recovery and its volumes are likely to grow in double digits in the near term. In metros, a gradual recovery is likely from Q3FY2021. Benign input prices would continue to support margins; cost savings would help OPM improve q-o-q and stabilise in Q3FY2021.

Outlook

A sturdy balance sheet, consistent dividend payouts and focus on becoming a complete home improvement player makes APL a better pick in consumer goods space. We maintain Buy with revised PT of Rs. 2,275.

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