Asian Paints Ltd. share price target

We thus upgrade our estimates for FY21/22 and introduce FY23E. Revise rating to BUY (HOLD earlier) and a TP of Rs. 2,300 (Rs. 1,796 earlier) as we roll forward to Sept-22E EPS (50x target PE multiple).

We recommend a BUY on ASIAN PAINTS with a Target Price of Rs. 2262 an upside of 7% from CMP of Rs. 2114 and Stop Loss Rs. 2040.

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...

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 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...