Asian Paints declines 3%; CLSA downgrades stock to sell

NEW DELHI: Shares of Asian Paints declined nearly 3 per cent in morning trade on Tuesday, extending the losses to the third consecutive session.

Global brokerage CLSA has downgraded to the stock to a 'Sell' from 'Outperform' while reducing the target price to Rs 1,400 from Rs 1,565. The brokerage has cut the EPS estimate by 2-5 per cent led by revenue cuts.

Meanwhile, the company reported that a fire broke out in Andhra Pradesh manufacturing facility on Monday.

The fire has been brought under control and the company is in the process of assessing the extent of the damage. The manufacturing operations of the plant have been affected.

Shares of the company traded 1.61 per cent down at Rs 1,472.30 on BSE around 9:50 am.