Asian Paints Ltd. share price target

With an upside of 1% from the CMP, we maintain our HOLD rating on the stock.

We expect the demand environment is likely to remain weak in coming quarters while increasing competition intensity in the sector will impact the outlook. we further reduce FY26/FY27 earnings by 7/8%, respectively....

Asian Paints (APNT) posted a weak 4QFY25, with consolidated/standalone revenue declining 4%/5% YoY (lower than est). Domestic volume grew 1.8% YoY.

APNT aims for single digit value growth, with 18-20% EBITDA margins in FY26 APNT has given a cautious outlook for FY26 with single digit topline growth and EBIDTA margins in the band of 18-20%. Demand scenario has been tepid and organized decorative demand has seen a decline in FY25. Rural and tier3/4 demand is better than urban India, however normal monsoons benefit of tax cuts and benign inflation. The competitive intensity remains high in decorative paints; however current discounts and the pricing environment are...

APL’s Q3FY25 revenue growth was hit by multiple headwinds, while OPM came better than expectation. Consolidated revenues fell by 6.1% y-o-y to Rs. 8,549 crore owing to muted demand conditions, downtrading by consumers and a weak festive season.

While there will be a favourable base starting from Q4FY25, Asian Paints is likely to post muted growth rates in CY25 considering: (1) The stress in urban markets is likely to continue. It has also resulted in downtrading impacting the profit pool.

Asian Paints’ Q3FY25 reported numbers were a mixed bag. Volume growth improved compared to the dip seen in the preceding quarter, while value growth took a further hit. On the other hand, EBITDA margin and net profit performance were better than estimated.

With an upside of 4% from the CMP, we maintain our HOLD rating on the stock.

Asian Paints (APNT) reported a weak 3QFY25. Its consolidated/standalone revenue declined 6%/8% YoY (in line).

With an upside of 6% from the CMP, we maintain our HOLD rating on the stock.

Asian Paints (APNT) registered weak 2Q performance with a 5%/7% YoY decline in consolidated/standalone revenue.

Asian Paints Limited’s (APL’s) Q2FY2025 performance was a miss on all fronts with consolidated revenue declining by 5% y-o-y, OPM lower by 480 bps y-o-y to 15.4%; adjusted PAT decreased 34% y-o-y. Decorative paints’ volumes decreased by 0.5%.

Asian Paints (APNT) posted 2%/3% YoY decline in consolidated/standalone revenue in 1QFY25.

With a downside of 1% from the CMP, we maintain our HOLD rating on the stock.

We upgrade Asian Paints Ltd (APL) from Hold to Buy with a revised PT of Rs. 3,385. Stock trades at 51x/45x its FY2025E/26E EPS, which is a discount to its historical average, making risk reward favourable.