Accumulate Asian Paints, target price Rs 3326: Prabhudas Lilladher

Prabhudas Lilladher has accumulate call on Asian Paints with a target price of Rs 3326. The current market price of Asian Paints is Rs 3006.8.

Asian Paints, incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 287663.42 Crore) operating in Building Materials sector.

Asian Paints key Products/Revenue Segments include Paints, Enamels, Varnishes & Black, Other Operating Revenue and Sale of services for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 8553.04 Crore, down -1.76 % from last quarter Total Income of Rs 8705.91 Crore and up 18.23 % from last year same quarter Total Income of Rs 7234.21 Crore. Company has reported net profit after tax of Rs 781.74 Crore in latest quarter.

The company’s top management includes Mr.Deepak Satwalekar, Mrs.Vibha Paul Rishi, Mr.R Seshasayee, Mrs.Pallavi Shroff, Mr.Suresh Narayanan, Ms.Nehal Vakil, Mr.Jigish Choksi, Ms.Amrita Vakil, Mr.Malav Dani, Mr.Ashwin Dani, Mr.Amit Syngle, Mr.Manish Choksi, Mr.Milind Sarwate. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2022, the company has a total of 96 Crore shares outstanding.

Investment Rationale
The brokerage expects 13% volume growth due to pent up demand, given prolonged rains in 2Q and marriage season. The brokerage expects Gross Margins to improve 190bps QoQ/80bpsYoY due to flow through of earlier price hikes.

Promoter/FII Holdings
Promoters held 52.63% stake in the company as of September quarter, while FIIs owned 0% and DIIs 8.67%.