Asian Paints trades deeper into the red, brokerages send out mixed signals

Shares of Asian Paints extended their losses on July 26 after revenue grew weakly 6.68% to Rs 9,182 crore in the April-June quarter.
Shares fell 0.39% to Rs 3,387.3 at 9:17 am on the National Stock Exchange. On July 25, shares of Asian Paints closed down 4% on the NSE.
Morgan Stanley has an “right low” rating on the stock with a target price of Rs. 2,702. Motilal Oswal has a “neutral” rating on the stock with a target price of Rs. 3120. The brokerage says the revenue figures are in line with their estimates and that a sharp cut in input costs is possible. resulting in healthy growth benefits. He expects Asian Paints revenue to grow at a CAGR of 13.1% during 2023-25 ​​and EBITDA to grow 19.8% on average during the same period.
Prabhudas Lilladher has a “cumulative” rating on the stock. The national brokerage said margins were up about 500 basis points, thanks to strong operating efforts and lower commodity price inflation. “We believe the upcoming holiday season, coupled with lower commodity inflation, will lead to healthy growth,” he said in a flash transaction. The company reported a 52% increase in annual net profit to Rs 1,574 crore in Q1FY24.
Asian Paints bathroom accessory sales fell 28.2% and kitchenware sales fell 12% year-on-year in Q1 FY24. Both segments posted lower revenues. due to its high base last year, the company said on a conference call with investors.
International sales fell 1.4% to Rs 695 billion year-on-year in the April-June quarter due to economic uncertainty, currency crises and liquidity issues in key markets in Asia and Africa, the company said in a press release.