Asian Paints Share Price: The quarterly results of India’s largest paint company Asian Paints Limited failed to influence analysts. Because of this, most of them retain their recession calls or cut their speed target. Asian Paints recorded a profit of Rs 1,128 crore in net profit in the quarter ended December 31, 2024 to Rs 1,128 crore. The company’s profits decreased due to the weak demand for the festive season. The paint manufacturer had recorded a net profit of Rs 1,475 crore in a period of a year ago.
In Q3Fy25, the company’s revenue declined by 6 percent to Rs 8,549 crore. While in Q3Fy24 it was Rs 9,103 crore. The Revenue of Asian Paints in the December quarter recorded a decline in the fourth consecutive quarter. However, the management hopes that the Revenue will return to the next few quarters.
The decrease in the demand of the veteran paints company was observed as a result of the weak festive season and the decrease in urban demand. Although the operating margin improved on a quarterly basis, the margin was affected due to increase in distribution expenses on an annual basis.
In the near period, the company remains cautiously optimistic about the improvement in demand status. On the other hand she will continue to invest in her brand. With this, focus will be on providing new methods and customers better. At the same time, volume growth is likely to be in single digit. While the Ebitda margin is likely to be 18-20 percent. Some softening in the prices of raw materials is estimated
International brokerage company Goldman Sachs has retained its ‘sales’ call on stock with a target of Rs 2,275. According to him, there is a possibility of low demand in the near period. In addition, competitive intensity is likely to increase in paints trading.
Nuwama Institutional Equities said that along with downtradeing by customers, demand outlook remains weak. Due to which unfavorable product mix has been seen. Its rural outlook remains strong, but only after two more quarters in the urban area. Brokerage retained its ‘purchase’ rating, but has reduced its estimate and target price from Rs 3,185 to Rs 3,000 per share.
There was a decline in stock in this morning business. During 9.29 am, the stock of Asian Paints fell 4.45 percent or Rs 102 trading at Rs 2252.05.
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