Asian Paints (APNT) has reported significantly lower-than-estimated performance in 2QFY19 led by disappointing realisation growth. APNT saw a significant increase in distemper and putty sales (low-realisation products) compared to the base quarter having higher contribution of emulsion paints. Though the Company hiked prices by 2.35% in Oct'18, it may not completely offset the spiraling input cost witnessed in Sept'18 led by INR depreciation and higher crude prices. Looking ahead, we believe APNT will continue to witness challenges on margin front, as fixed cost will continue to rise owing to commissioning of new plant, while price hikes are likely to be calibrated. We remain cautious on APNT on account of high valuation multiple of 42x FY20E...