Nifty trades at a 12-month forward P/E of 17.2x, a 13 percent premium to its 10-year average of 15.2x. At current prices, investors are advised to invest in a staggered manner in stocks
Although the MPC meet is likely to be a non-event, experts feel future commentary on rates will be important for the market
Volatile movements based on current political scenario involving elections, along with any downside on GDP growth are big headwinds for the market, Naveen Kulkarni, Head of Research at Reliance Securities said.
This is the verbatim transcript of Asian Paints management call with analysts.
As many as 15 out of 30 stocks in the S&P BSE Sensex are down 20-60 percent from their respective record highs.
Amid global and domestic headwinds, the market is likely to remain volatile and investors should use the current fall to build a portfolio for the next 2-3 years, suggest experts.
JM Financial is bullish on Asian Paints has recommended buy rating on the stock with a target price of Rs 1380 in its research report dated October 24, 2018.
Prabhudas Lilladher recommended accumulate rating on Asian Paints with a target price of Rs 1300 in its research report dated October 23, 2018.
ICICI Direct recommended hold rating on Asian Paints with a target price of Rs 1180 in its research report dated October 23, 2018.
Although the company has reported a pick-up in volume growth in the past three quarters, the management remains cautious as demand is yet to witness a broad-based recovery and competitive intensity continues to remain elevated
JM Financial recommended hold rating on Asian Paints with a target price of Rs 1410 in its research report dated October 22, 2018.
JPMorgan and Macquarie maintained their Neutral ratings on the stock, while BofAML maintained their By rating.
Its revenue rose to Rs 4,639 crore against Rs 4,265.3 crore (ex-excise duty) that was posted during the corresponding quarter of last year.
Revenues are expected to grow by 11 percent YoY
Bulls should only be able to regain control if the index reclaims 11,170 levels comfortably, else we may consolidate around current levels.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 32 points or 0.28 percent. Nifty futures were trading around 11,514-level on the Singaporean Exchange.
Asian Paints is India's largest and Asia's second largest paints corporation. It rules the Indian paint industry with 54.1 percent of the market share and is the holding company of Berger International.
Dolat Capital recommended Accumulate rating on Asian Paints with a target price of Rs 1500 in its research report dated July 24, 2018.
Revenue from operations grew by 15.1 percent year-on-year to Rs 4,390 crore with double digit volume growth in the decorative paint business.
Motilal Oswal expects revenues to grow 22 percent on a YoY basis to Rs 4,650 crore in 1QFY19, with 16 percent volume growth in the domestic decorative business
The breadth of the market favoured advances, with 1236 stocks advancing, 462 declining and 377 remaining unchanged. On BSE, 1572 stocks advanced, 774 declined and 106 remained unchanged.
The city-headquartered company is setting up plant with a 5 lakh KL per annum capacity at Visakhapatnam at an investment of Rs 1,785 crore and a 6 lakh KL plant at Mysuru pumping in Rs 2,300 crore.
Kotak Securities recommended accumulate rating on Asian Paints with a target price of Rs 1320 in its research report dated May 11, 2018.