Growth Trajectory Impressive but Valuations Limit Upside Asian Paints reported a mixed set of numbers for 4QFY17. While its consolidated revenues grew by 7.8% YoY to Rs39.5bn, EBITDA grew by a modest 2.1% YoY to Rs7.1bn. Consolidated net profit increased 10.1% YoY to Rs4.8bn on the back of higher other income. Volume growth in the decorative business stood at an impressive ~11% during the quarter. We expect Asian Paints to deliver 15.7% and 16.6% CAGR in revenue and earnings, respectively through FY17-19E. However, based on expected EPS of Rs28.6, the stock currently trades at expensive valuations of 40.8x FY19E earnings. Post our rating upgrade in 3QFY17, the stock has...