Asian Paints share price today: end 3% lower as Q3 results disappoint brokerages

Shares of Asian Paints declined 5 per cent before closing 3 per cent lower on Wednesday following a 23.5 per cent fall in consolidated net profit to ₹1,128.43 crore for the third quarter ended December 2024, and a 6 per cent dip in revenue at ₹8,599.44 crore. 

The stock ended 3.36 per cent lower on the BSE at ₹2,276, after hitting an intraday low of ₹2,235. On the NSE, the stock declined 3.40 per cent to ₹2,274.20.

Downtrading, muted demand and an adverse product mix have dragged the Q3 performance below consensus estimates, forcing brokerages to cut target prices and take divergent calls. 

Nuvama Institutional Equities has retained its buy rating at a reduced target price of ₹3,000 from ₹3,185, emphasising that volume growth will likely be in single digits going forward. The brokerage added that increased sales and distribution expenses due to heavy competition led to margin contraction.

“Some softening is anticipated in raw material prices. Weakness in rupee is a key concern,” it said and added that rural demand outlook remains strong, but urban could pick up only after two more quarters.

Motilal Oswal has reiterated a neutral call at a target price of ₹2,550. “Considering the uncertainty of demand recovery in the near term, there is limited respite for the stock,” it said.

Axis Securities analysts have maintained hold rating at a revised target price of ₹2,440 from ₹2,700 earlier, reinstating that the stock is likely to see sideways movement owing to subdued demand in the near-term and increased competition from new entrants.

However, the brokerage is positive on Asian Paints’ long-term prospects, factoring in the decline in raw material costs, investment in new plants and expansion of its manufacturing footprint.

Elara Capital has assigned a cautious outlook on Asian Paints due to heightened competition and muted earnings growth. The brokerage has a sell call on the stock at a lowered target price of ₹2,030, from ₹2,240 earlier.

Global brokerage Goldman Sachs has also given a sell rating at a target price of ₹2,275.

CLSA and Jefferies have assigned underperform calls at the target prices of ₹2,047 and ₹2,000, respectively.

In contrast, Macquarie has given an outperform rating at a target price of ₹2,650.