Asian Paints Ltd. share price target

Improvement in the outlook for volume growth and cost efficiencies makes us to increase our estimates marginally. However, likely delay in price hike post the GST rate cut may restrict near term upsides. We maintain HOLD with a revised Target Price (TP) of Rs1,370...

APL's high-volume trajectory continues with strong ~13-14% growth during Q1FY19. The performance was impressive considering further reduction in volume growth gap between APL and Kansai. In FY18 APL reported lower volume growth compared to Berger and Kansai. We believe that the improvement in the volume growth was primarily due to improvement in the rural growth. Going ahead, we believe that the growth momentum in the paints industry would sustain considering - (1) Overall paint industry to boom from better monsoon (2) favorable base (3) rural stimulus pre-election and (4)...

Asian Paints consolidated revenue from operations has risen by 14.1 % to Rs 4,492.30 crore for the quarter ended March 31, 2018 from Rs 3,936.72 crore in Q4FY2017. Profit before depreciation, interest, tax and other income (PBDIT) for the group increased by 18.7 % to Rs 839.93 crore from Rs 707.83 crore. Profit before tax (PBT) increased by 12.4 % to Rs 783.61 crore from Rs 697.07 crore. Net Profit after Minority Interest increased 4.6 % to Rs 480.99 crore as compared to Rs 459.99...

Revenue increased by 5.24% to Rs. 4483.58 Cr in Q4FY18 when compared to the previous quarter. Asian Paints Ltd Q4FY18 results Comment

Asian Paints (APL) recorded strong growth in net sales by ~15% YoY to | 4483.6 crore (I-direct estimate - | 4345.7 crore) led by a mix of volume growth and price hikes. We believe volume growth of ~11% during the quarter was led by both decorative and industrial paint demand. During FY18, the company took two price hikes in May 2017 and May 2018 by 2.7% and 1.4%, respectively. APL has guided at further hike in prices to offset rising inflationary pressure in raw materials. On the international front, poor...

Both the underperforming segments of Home improvement business including Kitchen (Sleek) and bathroom (EssEss), have reported strong financial performance which is healthy for the company. Other expenditure was significantly high in the quarter (+8.8% YoY and +29.2% QoQ), which impacted the operational performance. Source: Kotak Securities - PCG; Company...

grew in double-digits led by improved demand conditions. 47.2 Gross margin contracted 50bp YoY to 43.2%, but the impact was offset by CMP: INR1,215 TP: INR1,280(+5%)...

Asian Paints (APL) witnessed 10.5% growth in net sales to | 4260.5 crore (I-direct estimate - | 4460.4 crore) mainly led by a mix of volume growth and price hikes. We believe volume growth has been to the tune of 5% during the quarter. Decorative paints demand remained muted for the company due to lower demand in south India that was impacted by extended monsoons and continued GST related disruptive environment, in general Operating margin improved 120 bps to 20.9% (I-direct estimate:...

For quarter ended December 2017, net sales rose 10% to Rs 4260.52 crore compared to corresponding previous year period. The company operating margins rose 130 bps to 20.9%. As a result operating profit growth grew 18% to Rs 891.18 crore. Cost of raw material consumed as a percentage of net sales (net of stock adjustment) rose 170 bps to 51.3%, purchase of stock in trade fell 500 bps to 5.5%, employee benefit expense fell 10 bps to 6.5% and other expense decreased 260 bps to 15.3%. Other income of the company rose 20% to Rs 49.66 crore. Interest cost increased 2% to Rs 9.21 crore. Depreciation increased 6% to Rs 89.6 crore. PBT as a result rose 19% to Rs 842.03...

Asian Paints Ltd Q3FY18 results comment Revenue fell by 0.11% to Rs. 4260.52 Cr in Q3FY18 when compared to the previous quarter.