Analysts' Picks: Asian Paints
ASIAN PAINTS
CMP: RS 1,206.85
TARGET PRICE: RS 1,288
ASIT C Mehta Investment Intermediaries has downgraded its recommendation to ���hold��� while lowering its target price to Rs 1,288 from Rs 1,419, citing high input costs and slowing real estate as the reasons. ���Around 60-70 % of the cost constitutes of raw material.
As crude base products forms the major part of raw material any increase in the prices of crude oil would led further pressures on margins,��� the brokerage said in a note.
���Major growth in the company���s revenue comes from the decorative paint business. As the real estate is the major consumer of decorative paints, any slowdown in the sector would directly impact the paint industry. Thus, any such slowdown in the real estate sector would imply lower volumes of sales for the company,��� it added.
CMP: RS 1,206.85
TARGET PRICE: RS 1,288
ASIT C Mehta Investment Intermediaries has downgraded its recommendation to ���hold��� while lowering its target price to Rs 1,288 from Rs 1,419, citing high input costs and slowing real estate as the reasons. ���Around 60-70 % of the cost constitutes of raw material.
As crude base products forms the major part of raw material any increase in the prices of crude oil would led further pressures on margins,��� the brokerage said in a note.
���Major growth in the company���s revenue comes from the decorative paint business. As the real estate is the major consumer of decorative paints, any slowdown in the sector would directly impact the paint industry. Thus, any such slowdown in the real estate sector would imply lower volumes of sales for the company,��� it added.
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