Asian Paints Share Price Target 2025

Asian Paints quarter one results has been announced. The results failed to match with estimates underperform in the first quarter of FY25. Let's see in detail.
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Asian paints shares fell over 4 per cent to Rs 2848.15 in early morning today, July 18 after the bluechip paint firm posted weak results for the quarter ending June 2024 FY25. However, the stock later recovered from the day low of Rs 2842 to the day high of Rs 2957.9. 

Asian Paints Q1 Results & share price impact

Asian Paints consolidated revenue 20% by quarter on quarter and 3% year on year. Asian Paints net profit  down by 7% quarter on quarter and 25% year on year. Expenses were shoot up by 3% both quarter by quarter and year on year. Earning per share stood at 12.2%.

The leading paint and decor company total revenue from operations in the first quarter of the current fiscal year dropped 2.3% to Rs 8943 Crore compared to Rs 9154 Crore a year ago. The revenue was impacted by price cuts implemented in the previous quarter and a shift in mix. 

Amit Syngle, managing director and CEO of Asian Paints, noted that the paint industry faced challenging demand condition due to a severe heatwave and the general election during the quarter. He also said, “there is need of improvement in rural areas, the company overall value declined by three 3% because of earlier price reductions amid a shift in product mix”. Syngle also said, “improving demand in rural areas, brand presence, fostering innovations and focusing on customer-centric strategies are the things we are working upon”.

Asian Paints share price

Asian Paints Share Price Trend

After the first quarter results, Asian Paints shares come under pressure in the short term. Volume growth declined below the management guidance of double-digit growth and earnings outlook looks significantly weaker, especially with the overhang of rising competition. 

Goldman Sachs, which suggested a target price of Rs 2750 on Asian Paints, quarter one results were significantly below its estimates with consolidated EBITDA declining 20% year on year. There is a weakness in across volume growth, revenue growth and EBITDA margins. 

Asian Paints consolidated revenue declined 3% year on year to a combination of 7% volume growth, 4% price decline and 5-6% deterioration in product mix.

Company has forced to many problems in this election year. There are very ups and downs in the company as of now. The company has recently launch new brand called “Birla OPUS”.

Nuvama Institutional equities kept its buy rating intact on the stock. Quarter one was weak due to heatwave and elections. Now, the company has launched new brand, “Birla OPUS”  and also targeting rural areas. Now the share price target according to Nuvama Institutional are Rs 3450. 

Conclusion

Asian Paints is a very renowned and reputed company in the world. Its the market leader in the paint industry. The first quarter results of FY25 are below expectations because of heatwave and Lok Sabha polls but now the company can make strong recovery in second quarter. The company has also launched its new brand “Birla OPUS” which can be great success for them if they able to manage it well. 

Read detailed history of Asian paints here.

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