Goldman Sachs has reiterated its sell rating on Asian Paints, with a target price of ₹2,500 per share, after the company reported below-expectation performance in Q3FY26.
The brokerage noted that India decorative paints growth remained weak, even against a low base, highlighting muted demand conditions across key markets. Goldman Sachs said value growth for the business is likely to remain in the mid-single-digit range, reflecting ongoing pressure on volumes and pricing.
While margins were reported at the upper end of management’s guidance, the brokerage believes that any further margin gains are likely to be reinvested back into the business, limiting near-term earnings upside. Goldman Sachs also flagged cautious management commentary on demand trends, suggesting that a meaningful recovery could take time.
Given the combination of subdued volume growth, intensifying competition, and limited margin expansion headroom, Goldman Sachs remains cautious on the stock’s medium-term outlook.
Disclaimer: The views and recommendations above are those of Goldman Sachs. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.