Asian Paints shares extended their rally for a second day on Thursday, rising over 4 percent to Rs 2,897 after the company’s stronger-than-expected July–September quarter results and upbeat brokerage views. The stock had already gained 6 percent on Wednesday following the Q2 earnings beat. The company reported robust performance across all key parameters — domestic decorative volumes surged 10.9 percent, over twice Street estimates of 4–5 percent. Net profit jumped 47 percent year-on-year to Rs 1,018 crore, aided by a low base effect, while revenue grew 6.4 percent to Rs 8,531 crore. EBITDA rose 21.3 percent to Rs 1,503 crore, expanding margins by over 200 basis points to 17.6 percent.
With a market value of around Rs 2.73 lakh crore, Asian Paints trades at a high P/E of nearly 76 and offers a 0.87 percent dividend yield. Brokerages remain divided: Jefferies and HSBC reiterated ‘Buy’ calls with higher targets of Rs 3,300 and Rs 3,050 respectively, while Goldman Sachs maintained a ‘Sell’ rating with a Rs 2,500 target, citing competitive pressures and moderate growth guidance.
