Morgan Stanley has maintained its ‘underweight’ rating on Asian Paints, with a target price of ₹2,522 per share, implying a 24% downside from the current market price of ₹3,308.00. Despite raising the FY25 EBITDA margin assumption to 19% from 18.4%, Morgan Stanley remains cautious due to market factors.
The brokerage has noted that lower commodity costs have contributed to better margins, and FY25 earnings are expected to be 4% higher than previous estimates. However, despite the improved outlook, Morgan Stanley maintains its conservative stance, citing potential downside risks given the current valuation.
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