ICICI Direct has given Buy recommendation for Asian Paints with a target price of Rs. 3700 in its research report issued on Jul 27, 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.
We maintain our BUY rating on the stock. We revise our target price to Rs 3700/share and value APL at 65x P/E FY24E EPS.