Asian Paints Ltd. share price target

Asian Paints Ltd.'s net profit missed estimates on lower volume growth as distributors cut stock ahead of the Goods and Services Tax. Asian Paints revenue from Operations increased 4.9% to Rs 4228.26 crore in Q1FY18 from Rs 4,031.70 crore in Q1FY17. Profit before depreciation, interest, tax and other income (PBDIT) for the group decreased by 18.5% to Rs 665.37 crore from Rs 816.16 crore. Profit Before Tax (PBT) decreased by 19.1 % to Rs 645.23 crore from Rs 797.34 crore. Net Profit after Minority Interest decreased 20.1 % to Rs...

Revenue grew by 0.39% to Rs. 3952.45 Cr in Q4FY17 when compared to the previous quarter

Post demonetisation, Asian Paints (APL) recorded strong volume growth of ~11% YoY in Q4FY17 supported by a recovery in demand from tier II and tier III cities. However, the realisation remains muted due to a change in the product mix and some trade discounts in January. Further, industrial paint demand (automotive, powder coating) stayed intact from auto OEM, industrial liquid paint segment APL recorded ~80 bps decline in gross margin due to rising raw material prices in the last two quarters. To offset the rising raw...

Background: Asian Paints is the largest paint company in India with a market share of 50% within organised players and ranks among the top 10 decorative coating companies globally. It operates in 17 countries with 24 manufacturing facilities. Further, through subsidiaries - Berger International Limited, Apco Coatings, SCIB Paints and Taubmans it is also present in the international markets. Domestic operations however account for a predominant share of its profits. Asian Paints has ~28,000 dealers...

Growth Trajectory Impressive but Valuations Limit Upside Asian Paints reported a mixed set of numbers for 4QFY17. While its consolidated revenues grew by 7.8% YoY to Rs39.5bn, EBITDA grew by a modest 2.1% YoY to Rs7.1bn. Consolidated net profit increased 10.1% YoY to Rs4.8bn on the back of higher other income. Volume growth in the decorative business stood at an impressive ~11% during the quarter. We expect Asian Paints to deliver 15.7% and 16.6% CAGR in revenue and earnings, respectively through FY17-19E. However, based on expected EPS of Rs28.6, the stock currently trades at expensive valuations of 40.8x FY19E earnings. Post our rating upgrade in 3QFY17, the stock has...

Revenue rose by 4.52% to Rs. 3888.73 Cr in Q3FY17 when compared to the previous quarter. Also, it increased by 2.76% when compared with Q3FY16

Background: Asian Paints is the largest paint company in India with a market share of 50% within organised players and ranks among the top 10 decorative coating companies globally. It operates in 17 countries with 24 manufacturing facilities. Further, through subsidiaries - Berger International Limited, Apco Coatings, SCIB Paints and Taubmans it is also present in the international markets. Domestic operations however account for a predominant share of its profits. Asian Paints has ~28,000 dealers...

Asian Paints (APL) posted a good set of numbers amid a challenging demand environment due to demonetisation. Sales growth at 3% YoY (vs. I-direct estimate: -13%) was driven by volume growth of ~4% YoY due to 1) launch of various trade schemes in November December 2016 2) change in product mix. The domestic business recorded flattish sales growth of 0.8% YoY while the overseas subsidiary recorded sales growth of ~13% YoY to | 719 crore. Further, demand of industrial paint (automotive and powder coating)...

Core Moats Remain Intact despite Near-term Overhang Asian Paints (APNT) has delivered flattish performance in 3QFY17 with its consolidated net sales and PAT growing 2.8% & 1.5% to Rs38.9bn & Rs4.9bn, respectively while EBITDA remained flat at Rs7.3bn. Owing to demonetisation the decorative business in India reported low single-digit growth in 3QFY17. Following modest performance in 3QFY17, we have downwardly revised our earnings estimates by 5% and expect...