Margin concerns may limit upsides in Asian Paints stock

While volume performance has been strong, valuations factor in the gains

Topics
Asian Paints | Markets

Ram Prasad Sahu  |  Mumbai 

Despite the impact of the second wave on demand, India’s largest paint maker did not disappoint on the revenue front. Led by pent-up demand, sales of Asian Paints saw a sharp rebound in June helping the company restrict the sales decline on a sequential basis to 16 per cent.

Given the low base last year, a comparison with Q1FY20 indicates a 9 per cent uptick in revenues which is impressive given lockdown in multiple states. Investors too cheered the result and the stock gained 6 per cent sending its market capitalisation over the Rs 3 trillion mark. While South India was impacted ...

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First Published: Wed, July 21 2021. 19:08 IST
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