Brokerages turn negative on Asian Paints post its Q1 earnings. CITI has cut its target price for Asian Paints shares to Rs 2,400 from Rs 2,600 earlier, implying a 19% downside from CMP of Rs 2,974. The brokerage believes that July’24 price hike was only 1% and a rural demand uptick can further hurt product mix. It has further cut its FY25- 27E EPS estimates by 8-12%.
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.
