Nuvama has reiterated its buy rating on Asian Paints with a target price of ₹2,935 following a management interaction that reinforced confidence in the company’s medium-term growth and margin profile. The brokerage said management’s priority remains protecting market share while maintaining EBITDA margins in the 18–20% range over the mid to long term, even though quarterly variations are expected.
Demand trends are stabilising, with rural demand described as strong and urban consumption showing steady signs of recovery. Competition, which had earlier intensified, is now rationalising, helping the pricing environment. Raw material costs remain benign and are likely to stay stable through FY26, providing support for margin sustainability.
The company’s industrial coatings business continues to perform strongly, with revenues growing 8.8% year-on-year in Q1 FY26 compared with 6% in FY25. Nuvama also highlighted that the proposed GST cuts in other consumption categories could indirectly benefit paint demand, leading to a modest uptick in overall consumption. The brokerage said Asian Paints’ strong brand equity, wide distribution, and disciplined margin approach make it well placed to capture the gradual revival in demand.
Disclaimer: The views and recommendations made in this article are those of Nuvama. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
