Shares of Asian Paints declined 5 per cent earlier than closing 3 per cent decrease on Wednesday following a 23.5 per cent fall in consolidated web revenue to ₹1,128.43 crore for the third quarter ended December 2024, and a 6 per cent dip in income at ₹8,599.44 crore.
The inventory ended 3.36 per cent decrease on the BSE at ₹2,276, after hitting an intraday low of ₹2,235. On the NSE, the inventory declined 3.40 per cent to ₹2,274.20.
Downtrading, muted demand and an antagonistic product combine have dragged the Q3 efficiency beneath consensus estimates, forcing brokerages to chop goal costs and take divergent calls.
Nuvama Institutional Equities has retained its purchase ranking at a lowered goal worth of ₹3,000 from ₹3,185, emphasising that quantity development will probably be in single digits going ahead. The brokerage added that elevated gross sales and distribution bills as a consequence of heavy competitors led to margin contraction.
“Some softening is anticipated in uncooked materials costs. Weak spot in rupee is a key concern,” it mentioned and added that rural demand outlook stays sturdy, however city may choose up solely after two extra quarters.
Motilal Oswal has reiterated a impartial name at a goal worth of ₹2,550. “Contemplating the uncertainty of demand restoration within the close to time period, there’s restricted respite for the inventory,” it mentioned.
Axis Securities analysts have maintained maintain ranking at a revised goal worth of ₹2,440 from ₹2,700 earlier, reinstating that the inventory is prone to see sideways motion owing to subdued demand within the near-term and elevated competitors from new entrants.
Nevertheless, the brokerage is optimistic on Asian Paints’ long-term prospects, factoring within the decline in uncooked materials prices, funding in new crops and enlargement of its manufacturing footprint.
Elara Capital has assigned a cautious outlook on Asian Paints as a consequence of heightened competitors and muted earnings development. The brokerage has a promote name on the inventory at a lowered goal worth of ₹2,030, from ₹2,240 earlier.
International brokerage Goldman Sachs has additionally given a promote ranking at a goal worth of ₹2,275.
CLSA and Jefferies have assigned underperform calls on the goal costs of ₹2,047 and ₹2,000, respectively.
In distinction, Macquarie has given an outperform ranking at a goal worth of ₹2,650.
