Moneycontrol PRO

Buy Asian Paints target of Rs 3511: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Asian Paints has recommended buy rating on the stock with a target price of Rs 3511 in its research report dated July 22, 2021.

July 22, 2021 / 02:36 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Asian Paints


We are cutting FY22/F23 EPS by 7.7%/2.6% on near term input cost pressures although we remain positive on long term growth drivers. We expect APNT to sustain double digit volume growth led by 1) Market share gains from both organized and unorganized players due to strong focus on economy segment 2) rising innovation in Paints and coatings 3) Encouraging growth across waterproofing/ construction aids and extending presence in adhesives 4) strong penetration opportunity in small towns and rural India and 5) foray into designer tiles and home décor business allowing APNT to emerge as a complete home solution company.



Outlook


We retain long term Buy on the stock with DCF based target price of Rs3511 (Rs3136 earlier). We expect back ended returns given near term margin pressures and valuations at 61.5xFY23 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.

Broker Research
first published: Jul 22, 2021 02:36 pm
Sections
ISO 27001 - BSI Assurance Mark