Asian Paints Ltd. share price target

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' numbers for 2QFY16 were below our estimate. On a consolidated basis, revenue increased by 4% to Rs37.3bn compared to our estimate of Rs38.9bn. EBITDA and net profit too came in lower at Rs5.7bn and Rs4bn, respectively, which were 7% and 11% below our estimate. Taking into account the below par performance, we have reduced our revenue and earnings estimates by 3% and 9%, respectively. At the current price, the stock is trading at 47.1x FY16E and 41.4x FY17E, respectively. We...

Asian Paints reported in line revenue growth of 7.8% YoY to Rs 36.2bn in 1QFY16. However, what impressed us was (1) Strong vol growth recovery (in a challenging demand environment) in domestic decorative business (~10% YoY, led by price cuts and healthy growth in low end and premium products) after the two tepid trailing quarters (3% and 2%), (2) Multi quarter high gross margins ( 372 bps YoY), aided by RM tailwinds (lower crude and TiO2 prices).

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) Q1FY16 results came ahead of our estimates (1) revenue jumped 7.8% YoY to Rs36.2 bn Vs est of Rs36.1 bn (2) Operating profit increased 28.6% YoY to Rs6.8 bn Vs est of Rs5.8 bn(3) Operating margin expanded by 310 bps YoY to 18.9% vs est of 16.2% and (4) APAT grew 34.4% YoY to Rs4.6 bn Vs est of Rs3.7bn. We have upward revised our FY16E and FY17E EPS estimates to factor in Q1FY16 performance and significant RM gains during the quarter. We have revised price target to Rs858/Share and maintain our HOLD rating.

margin expansion. Volume growth remained sluggish and concerns about growth persist. Wehavemarginallyrevisedourestimatesdownwardsbecauseoflowerrealisationbutwe have built for higher margin expansion on further decline in input costs. We maintain our...

Indian paint industry is divided into two segment organized and unorganized with organized sector accounting for 80% of total paint industry's market. Asian Paints ltd is the largest industry...

Asian Paints' Q4FY15 numbers were significantly below expectations, as volume growth slumpedforthesecondsuccessivequarter;this,anduninspiringmanagementcommentary on margins and pricing indicates that challenges are significantly higher than our and...

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 revenue grew a mere 6.9% YoY to Rs 35.4bn. Impacted by sluggish demand environment, volumes grew a paltry ~4% YoY in the domestic decorative business. In addition, EBITDA margin expansion of 115bps YoY (15.8%) was well below expectation. APAT grew by 16.1% to Rs 3.4bn.