D-Street bullish on Asian Paints after Q3 results, raise target price

Mumbai: Most brokerages have retained their bullish views on Asian Paints after the company reported a 62.3% jump in its consolidated profit to Rs 1,265.4 crore for the quarter ended December 2020. Shares of Asian Paints ended down 4.22% on profit booking on Friday.

Morgan Stanley retained an overweight rating and raised target price to Rs 3,000 from Rs 2,300. HSBC has raised target price to Rs 3,150 from Rs 3,000 while retaining a buy recommendation. CLSA has retained an outperform rating with a target price of Rs 2,950.

CLSA said Asian Paints is its preferred pick in the discretionary segment given the structural opportunity.


"We continue to see Asian Paints’ initiatives through its widening presence in the value segment, expanding its distribution reach, service capabilities and its ability to create new segments aiding its market share gains," said CLSA.

HSBC said Asian Paints’ current price builds in long-term earnings growth of 15-16% which is achievable given the structural growth of the category, which is also buttressed by near-term strong earnings growth momentum.

IDBI Capital has downgraded the stock to reduce given the recent rally in the shares of Asian Paints.