Nomura has retained its ‘Neutral’ rating on Asian Paints with a target price of ₹2,285, following the company’s Q1FY26 results that were largely in line with expectations. The stock last closed at ₹2,349.00.
The decorative paints major posted a volume growth of 3.9% year-on-year, closely aligning with Nomura’s estimate of 3.5%. The brokerage noted that while there are early signs of demand revival, they believe these are already priced into the stock and do not drive any meaningful upside.
Nomura’s view reflects a cautious stance, especially amid intense competitive pressures in the decorative paints segment. With valuations remaining elevated and limited near-term triggers, the brokerage does not see scope for material re-rating in the stock.
Disclaimer: The views and investment recommendations expressed in this article are those of Nomura and do not represent the views of this publication. Investors are advised to consult their financial advisors before making any investment decisions.
