- Asian Paints reported a net income of 9.94 billion rupees for the second quarter.
- The net income exceeded analyst estimates of 8.94 billion rupees.
- Profit before depreciation, interest, tax, and other income (PBDIT) was 15.03 billion rupees.
- This PBDIT figure was higher than the estimated 13.41 billion rupees.
- The company’s PBDIT margin stood at 17.7%.
- Market analyst recommendations include 11 buys, 9 holds, and 18 sells for Asian Paints.
Asian Paints on Smartkarma
Analyst coverage on Asian Paints at Smartkarma showcases a mix of perspectives. Brian Freitas highlights potential free float changes and passive flows in November, with some stocks expected to see inflows from global trackers due to shareholding pattern shifts. On the other hand, Sudarshan Bhandari takes a bearish stance in the Asian Paints Vs. Grasim anti-trust showdown. Grasim’s allegations of anti-competitive practices by Asian Paints have led to a probe by CCI, potentially impacting dealer contracts in B2C staples. The outcome of the probe could reshape the dynamics of dealer contracts in the industry.
Furthermore, Rahul Jain‘s analysis delves into Asian Paints‘ challenges in navigating growth amid industry evolution. With FY26 guidance pointing towards low growth and pressure from competitors like Grasim and JSW, the decorative paints market faces intensifying pricing pressure. Despite a correction in stock value, Asian Paints still trades at a high P/E ratio of around 55x, signaling potential overvaluation given the slowing growth and increasing competitive risks in the sector.
A look at Asian Paints Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Asian Paints, a leading manufacturer of decorative paints and industrial chemicals, stands out positively in several key aspects according to Smartkarma’s Smart Scores. With a strong dividend score of 4, investors can expect steady returns over the long term. Additionally, the company’s high resilience score of 4 indicates its ability to weather economic fluctuations effectively.
Furthermore, Asian Paints demonstrates robust momentum with a score of 5, suggesting that the company is experiencing strong growth trends. While its growth score of 3 is slightly lower, the overall outlook remains promising. Although the value score is moderate at 2, the company’s strong performance in other areas positions it well for continued success in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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