Shares of Asian Paints Limited declined 4.47%, trading at Rs 2,249 in early session today, after the company reported disappointing Q3 FY25 financial results. The company posted a 6.1% YoY decline in consolidated net sales to Rs 8,522 crore, compared to Rs 9,074.9 crore in Q3 FY24. Consolidated net profit (PAT) fell 23.5% YoY to Rs 1,110.5 crore, driven by weak demand, a muted festive season, and increased operating expenses.
Segment-wise Highlights:
- Decorative Business (India): Reported 1.6% volume growth but a 7.8% revenue decline due to downgrading and weak demand.
- Industrial Business: Revenue grew 3.8% YoY, with contributions from the General Industrial and Refinish segments.
- Home Décor Business: Continued growth with a 2.6% YoY increase in bath fittings sales to Rs 87.6 crore and 2.7% growth in kitchen sales to Rs 102.7 crore.
- International Business: Revenue grew 5% YoY to Rs 818 crore, with key markets such as the Middle East and Asia driving the growth.
Amit Syngle, Managing Director & CEO, acknowledged the challenges, noting subdued urban demand and higher distribution costs impacted operating margins. However, the company’s industrial and international segments demonstrated growth resilience.
Brokerages have issued mixed ratings on Asian Paints following its weak Q3 FY25 performance. Macquarie maintained an “Outperform” rating with a target price of Rs 2,650 per share, reflecting a neutral outlook. Nuvama retained a “Buy” rating but cut its target price to Rs 3,000 per share, signaling cautious optimism.
Meanwhile, Morgan Stanley maintained an “Underweight” rating and slashed the target price to Rs 2,358 per share, reflecting a negative stance. Jefferies also maintained its “Underperform” rating, with a reduced target price of Rs 2,000 per share, while CLSA reiterated its “Underperform” rating and set a target price of Rs 2,047 per share, highlighting concerns over margins and muted demand.
Asian Paints’ shares traded at Rs 2,249, down from the previous close of Rs 2,354.35. The stock’s day range was between Rs 2,237.25 and Rs 2,276.45, with a market capitalization of Rs 2.16 lakh crore. The stock’s 52-week range is between Rs 2,207.80 and Rs 3,394.90, reflecting its sensitivity to demand fluctuations.
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