Asian Paints reported strong set of numbers for 3QFY16 that exceeded our estimates. While consolidated revenues increased 13.9% to Rs41bn (6% ahead of our estimates), net profit grew by 25.8% to Rs4.6bn that was 9% ahead of our estimates. Volume growth for the quarter was ~15%, which was impressive. We expect Asian paints to post revenue and earnings CAGR of 11% and 16% respectively through FY15-18E. Based on expected EPS of Rs22.8 in FY18E, the stock is trading at price earnings multiple of 37.2x. Considering strong uptick in volumes and post introduction of...