Buy Asian Paints; target of Rs 3691: Geojit

Geojit is bullish on Asian Paints has recommended buy rating on the stock with a target price of Rs 3691 in its research report dated August 08, 2023.

Broker Research

August 12, 2023 / 10:43 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Geojit's research report on Asian Paints

Asian Paints Ltd. (APNT), is engaged in the business of manufacturing, selling and distribution of paints and related products for home décor. APNT is the market leader in the Indian paint manufacturing industry. APNT maintained double digit volume growth of 10% YoY, aided by improving rural demand. While revenue grew by 6.7% YoY in Q1FY24. EBITDA margin expanded by 502bps YoY to 23.1%, supported by a fall in raw material prices and efficient sourcing of raw materials. Robust demand and expansion in the distribution network supported the decorative volumes, while industrial paint demand was supported by the Auto segments. Good progress in the monsoon and a longer festival season augur well for peak season demand.

Outlook

Superior product mix and comfort with moderating raw material prices bode well for profitability. We increase FY24 & FY25 earnings forecasts by 5%/2%, respectively, in expectation of margin expansion. We revise our rating to BUY with a TP of Rs. 3,691, based on a P/E of 60x on FY25E EPS.

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