Moneycontrol PRO

Buy Asian Paints; target of Rs 3502: Geojit

Geojit is bullish on Asian Paints has recommended buy rating on the stock with a target price of Rs 3502 in its research report dated July 28, 2022.

July 29, 2022 / 05:04 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Geojit's research report on Asian Paints


Asian paints (APNT), is engaged in the business of manufacturing, selling and distribution of paints and related product to home décor. APNT is the market leader in the Indian paint manufacturing industry. Top-line growth of 54% YoY in Q1FY23, driven by robust volume growth of 37% YoY, was better than our estimate. Product mix improved during Q1FY23 with higher sales of economy & luxury emulsion and premium water proofing & wood finishes. EBITDA margin improved by 172bps YoY to 18.1% due to the calibrated effect of price hikes. In Q1, APNT took 2% price hike and will take 0.5% hike in Aug’22 to mitigate cost pressure. The company remain focussed on gain in market share, new product offerings, and increasing distribution reach as the long term story remain intact.



Outlook


Consistent volume growth and market share gain will help the company to achieve revenue and PAT CAGR of 15%/29% respectively over FY22-FY24E. We therefore, reiterate Buy rating on the stock with an upward revision in TP to Rs. 3,502 based on a P/E of 62x on FY24E EPS.

Close

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Asian Paints - 280722 - geo

Broker Research
first published: Jul 29, 2022 05:04 pm
Sections
ISO 27001 - BSI Assurance Mark