Asian Paints Share Price Highlights November 11, 2024: Asian Paints stock closes 8% lower post Q2 results

Shares of Asian Paints closed 8% lower on the NSE at ₹2,547.80 on Monday. 

On the BSE, the stock declined 8.21% to ₹2,542.

Top gainers on the NSE as at 3 pm: Power Grid (4.44%), Trent (3.19%), HCL Tech (1.69%), Infosys (1.69%), Tech Mahindra (1.35%)

Top losers:

Asian Paints (-8.24%), Britannia (-5.27%), Apollo Hospitals (-3.68%), Cipla (-2.33%), JSW Steel (-2.14%)

(NSE Data)

Shares of Asian Paints dipped 8.61% on the NSE to ₹2,531 as at 2.25 pm.

Asian Paints led the losers, plummeting 8.03 per cent after disappointing quarterly results. Healthcare stocks faced selling pressure with Apollo Hospitals declining 3.15 per cent and Cipla dropping 2.70 per cent. Auto manufacturer Mahindra & Mahindra shed 1.76 per cent, while FMCG giant Britannia Industries fell 1.71 per cent.

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Shares of Asian Paints declined 8.07% on the NSE to ₹2,546 as at 1 pm.

HDFC Securities had earlier mentioned that the paints sector is likely to grapple with elevated capacity levels and rising competitive intensity (Grasim’s entry into paints) in the near-to-medium term.

Asian Paints stock traded at ₹2,550.05 on the NSE, lower by 7.92% as at 11.58 am.

Shares of Asian Paints tumbled 8% to ₹2,547.85 on the NSE as at 11.35 am.

CLSA on Asian Paints: Maintain Underperform on Company, cut target price at Rs 2290/Sh (Negative) 

Nomura on Asian Paints: Maintain Neutral on Company, cut target price at Rs 2500/Sh (Negative) 

JP Morgan on Asian Paints: Downgrade to Underweight on Company, cut target price at Rs 2400/Sh (Negative)

MS on Asian Paints: Maintain Underweight on Company, cut target price at Rs 2522/Sh (Negative)

JPM on Asian Paints

Downgrade to UW, TP cut to Rs 2400 

Q2 significantly weaker than expectations – revenue/EBITDA was 6%/20% below consensus

APNT is lagging peers with differential expanding further in Q2 both on reve & earnings front

Lower FY25-27E EPS by 10-12%

Jefferies on Asian Paints

U-P, TP Rs 2100

Significant miss in 2Q, with a line by line miss across P&L heads

A mild vol decline, >500bp Ebitda margin decline resulted in pre-ex earning decline of 31% YoY

Mgmt blamed weak consumer sentiment & seasonality but presented +ve H2 view

Nomura on Asian Paints

Neutral, TP Rs 2500

2Q: Below est.; volumes decline of 0.5% y-y below peers’ growth of c.3-4% & est of +8%

Sales / EBITDA decline sharply by 5% / 28% y-y

OPM down sharply due to a drop in GPM/ higher staff cost; APNT’s OPM narrows vs peers

MS on Asian Paints

UW, TP Rs 2522

2Q revenue & margins missed estimates, hampered by subdued demand and extended rains & floods

Volume growth (at -0.5%) was weaker than peers

Product mix, rising rebates, employee costs and high selling expenses are key monitorables

This is a contrived story. As someone who had an inside track on this, I should know. The threat to Ashwin Dani was hardly an investment banker but two people significantly bigger than- one a politician and another a very highly regarded individual. Letting it remain at this- only to correct the info. BTW there are very respected people still around who know what I am saying and made things happen. Having said that - Dani ran a good company but I don’t have much regard for him as a person!

Here’s the post

“The story-telling and narratives which were peddled on Asian paints were very raw, unthinking and superficial at so many levels. We were varnishing the truth all along. We completely ignored industry structure changing dramatically, competitive intensity transforming permanently and the industry becoming completely dominated by large organised players. We failed to foresee competition from big players, heavy investment in the industry and the impact of the industry growing capacity way ahead of demand. This will take force start turf wars in every segment of the paint market. Even a champion like Asianpaints is now on a sticky wicket. The wet paint may end up drying a lot faster,” he wrote on X.

Asian Paints stock has hit 52-week low today at ₹2,506 on the NSE post 43.71% decline in consolidated net profit to ₹693.66 crore for the September quarter.

Asian Paints on Saturday reported a 43.71 per cent decline in consolidated net profit to ₹693.66 crore for the September quarter, impacted by soft-demand conditions, material price inflation and a decline in decorative and coatings business in the domestic market.The company had logged a net profit of ₹1,232.39 crore during the July-September period a year ago, according to a regulatory filing by Asian Paints.

Its revenue from operations was down 5.3 per cent to ₹8,027.54 crore in the September quarter. In the year-ago period, it stood at ₹8,478.57 crore.

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