Religare's report on Asian PaintsAPNT posted a weak Q2 with 4%/16.7%/14.9% YoY growth in consolidated net sales/EBITDA/adj. PAT, even as domestic volume growth came in line at ~8-9%. EBITDA margins too disappointed (15.3% vs. RCMLe 16%) on an adverse product mix. While topline growth should recover to ~10% in H2 off a low base and festive sales, we pare our FY16-FY18 EPS to build in lower revenue growth this quarter. We restate BUY with a Sep’16 TP of Rs 935 (Rs 950 earlier) and recommend buying the stock on dips (Rs 800-825)Maintain BUY; Sep’16 TP Rs 935: While we pare our FY16/FY17/FY18 earnings by 5.8%/4.8%/3.7% to build in lower revenue growth, we expect demand to recover from H2FY16 onwards. Maintain BUY with a Sep’16 TP of Rs 935 (Rs 950 earlier), says Religare research report.For all recommendations, 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
