Brokerages turn cautious on Asian Paints stock after the company posted a weaker than expected set of Q1 earnings. Nuvama in its latest note on Asian Paints said that green shoots from rural markets and a better monsoon can aid improvement in demand for the company. Nuvama however says that the near-term downtick in Asian Paints shares can be considered as a buying opportunity for investors. The brokerage has a Buy rating on the stock with a target price of Rs 3,450.
Asian Paints reported a consolidated net profit of Rs 1,170 crore for Q1 FY25, marking a nearly 25% decline year-on-year. The drop was attributed to a challenging demand environment and fell short of analyst expectations.
India’s largest paint manufacturer also saw its revenue from operations for the April-June quarter decrease by more than 2% year-on-year to Rs 8,970 crore, missing estimates.
