ICICI Direct has given Buy recommendation for Asian Paints recommended buy rating on the stock with a target price of Rs 3685 in its research rep with a target price of Rs. 3685 in its research report issued on Oct 21, 2022
ICICI Direct’s research report on Asian Paints
Asian Paints (APL) is India’s largest decorative paint company. The company derives ~98% revenue from the paints business while 2% business comes from the home improvement business (kitchen and bathroom fittings). Strong distribution network of 70,000 dealers, 2x more than the No. 2 player • Despite being in a capital intensive business, the company has maintained a strong balance sheet with RoCE, RoE of 30%, 25%, respectively.
Outlook
We maintain our BUY rating on the stock. We revise our target price to Rs 3685/share and value APL at 68x P/E FY24E EPS.