Reduce Asian Paints, target of Rs 475: Varun Lohchab

Varun Lohchab, Regional Head of Consumer at CIMB Equities told CNBC-TV18, "We have maintained reduce rating on Asian Paints with a target price of Rs 475. We were already negative on the stock for sometime and we have cut back our earning estimate by around 6-7 percent."

He further added, "Asian Paints valuations are anyway very stretched relative to rest of the sector. The stock is trading at 2 standard deviations above its historical average valuations and though rest of the sector has been weak in the last 6-7 months on back of slowing consumption, Asian Paints was quite resilient given that they were reporting better numbers. We believe that the pressure points are now visible for them as well both in terms of topline and margin, so we maintain our reduce call on the stock."