Asian Paints Ltd. share price target

The stock is currently trading at 59.2x/49.3x its FY2022/23E EPS. Leadership position in the domestic decorative paint industry, sturdy balance sheet, and good dividend pay-out will keep valuations at premium level. We have fine-tuned our earnings estimates to factor better-than-expected...

Asian Paints (APNT) above expectation result was driven by volume growth during Jun'20 (at 14% YoY). Management believe this is led by fresh painting and not pent-up demand), has been a positive surprise. Safe painting campaign and promotion of Royal Health Shield has been extremely successful in addressing safety-concerns of customers. Positively, waterproofing continues to grow at a faster rate compared to decorative. Even performance of international subsidiaries witnessed double digit volume growth during Jun'20. In the light of current performance and management's confidence in execution, we change our estimates upwards with a revised TP of Rs...

Q1FY21 performance beat our estimates on topline and profitability driven by a robust pace of recovery in volumes (Q1 volumes declined 35% vs our/street estimates of -45%/over 50% decline). Volumes in June grew at healthy 14% led by fresh homes and repainting as May witnessed recovery from pent-up

Asian paints consolidated net sales fell 43% to Rs 2922.66 crore for the quarter ended June20 consumed as a percentage of net sales (net of stock adjustment) fell 300 bps to 47.3% while purchase of stock in trade rose 30 bps to 6.7%, employee benefit expense rose 610 bps to...

Pick up in demand, a positive surprise... Asian paints (APNT), is the market leader in the Indian paint manufacturing industry with a market share of ~53%. Q1FY21 revenue declined by 43% YoY, decorative business recovered to 80% to pre Covid levels in May while double digit volume registered in June month are positive. Management expects volumes to improve in coming quarters...

Q1FY21 revenues grew 14% YoY to | 1671 crore (I-direct estimate: | 1651 crore) mainly due to 18.9% YoY growth in biosimilars to | 692 crore. The Generics segment grew 16.1% YoY to | 599 crore. Research services segment remained flat YoY at | 422 crore. EBITDA margins contracted 512 bps YoY to 24.7% (I-direct estimate: 22.2%) mainly due to lower gross margins and higher R&D; costs. EBITDA declined 5.5% YoY to | 413 crore against I-direct estimate of | 366 crore. Adjusted PAT declined 27.6% YoY to | 149 crore (I-direct estimate: | 127 crore). Delta vis--vis EBITDA was due...

25 July 2020 While Asian Paints (APNT) reported sharp YoY declines of 42.7%, 58.2%, and 67.4% in sales, EBITDA, and PAT, respectively, the numbers were still better than expected given the double-digit volume growth witnessed in Jun20. Despite healthy volume growth, earnings growth has been weak for several years now, which is likely to continue going ahead. Nevertheless, the likelihood of sharp earnings decline, as feared earlier, may not materialize. Therefore, it is possible that APNT, unlike other discretionary peers, would emerge relatively unscathed from the COVID-19 crisis. With better than expected recovery, APNT continues to remain market leader in a category with attractive long term potential. Hence, we upgrade our rating from Sell Rich valuations of 55x FY22 EPS for a business with uncertain earnings growth and weaker ROCE v/s peers prevent us from turning more constructive. 55%) in the domestic Decorative Paints business.