KR Choksey has given Buy recommendation for Asian Paints with a target price of Rs. 3906 in its research report issued on Jan 27, 2022
KR Choksey’s research report on Asian Paints
Asian Paints once again reported double-digit revenue growth of 25.6% YoY to INR 85,272 Mn in Q3FY22. Its EBITDA margin continues to take a hit in Q3FY22 which declined by 825 bps YoY to 18.1% due to unprecedented rise in raw material costs. Net Profit decreased by 18.5% YoY to INR 10,313 Mn, with NPM at 12.1% (-655 bps YoY). Asian Paints registered a robust volume growth of 18% YoY on account of strong growth in tier I and tier II cities.
We apply P/E multiple of 65x on FY24E EPS of INR 60.1 to arrive at target price of INR 3,906 (previous TP: INR 3,530); an upside potential of 23.8%. Accordingly, we maintain our “BUY” rating on the shares of Asian Paints Ltd.
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At 16:00 hrs Asian Paints was quoting at Rs 3,197.90, up Rs 0.45, or 0.01 percent.
It has touched an intraday high of Rs 3,244.00 and an intraday low of Rs 3,192.20.
It was trading with volumes of 37,745 shares, compared to its thirty day average of 51,472 shares, a decrease of -26.67 percent.
In the previous trading session, the share closed up 1.36 percent or Rs 42.75 at Rs 3,197.45.
The share touched its 52-week high Rs 3,588.05 and 52-week low Rs 2,261.45 on 10 January, 2022 and 26 February, 2021, respectively.
Currently, it is trading 10.87 percent below its 52-week high and 41.41 percent above its 52-week low.
Market capitalisation stands at Rs 306,741.86 crore.