Asian Paints stock: Due to new competitors entering the paints industry, the brokerage house anticipates higher rivalry starting in the upcoming quarter. Among the worst performers in the Nifty 50 was Asian Paints’ stock. Shares of Asian Paints dropped 6% to Rs 3,048.60 today.
Motilal Oswal’s Asian Paints
The broking company has set a target price of Rs 3,340, which represents a 3% increase over the current market value. It has maintained the “neutral” rating.
The brokerage house has maintained its expectations for FY 25 but increased the company’s operating margin estimates for FY 24 by 5%. With their large budgets and commitments to investment, new competitors may cause a shift in the industry’s cost structure and market share, therefore Motilal would be closely monitoring their arrival.
The brokerage business claims that “waterproofing and putty have been the new growth engines for the company.”According to the brokerage company, “the paints segment may not enjoy higher multiples of the past” on the risk front.
Motilal Oswal stated that the business has a track record of strong execution and will be able to manage the difficulties without jeopardizing its large-margin structure.
Asian Paints’ InCredible Equities
The brokerage business has a distinct opinion regarding the stock. With a target price of Rs 3,000, which represents a 7.5% decline from the current market price, the broking firm has maintained its “Reduce” recommendation on the stock. Nevertheless, increased the FY 24 earnings per share projections to 5.1%.
The next quarter is probably going to see more competition as Grasim continues to expand. Since consumer mood is anticipated to stay muted, which could have an influence on growth, the brokerage house anticipates that “pricing will remain a key lever for continued growth.”
The firm predicts that the company’s value would increase slowly since it might keep upping the “rebating intensity,” which will further drive down prices in the ornamental market.
“The broking firm anticipates a gradual increase in competitive pressure starting from the fourth quarter of FY24F due to the introduction of Birla Opus. Additionally, the firm foresees a challenging near-term environment attributed to lower pricing leverage amid raw material inflation.”
