Buy Asian Paints, target price Rs 3460: ICICI Direct

ICICI Direct has buy call on Asian Paints with a target price of Rs 3460. The current market price of Asian Paints Ltd. is Rs 3133.75. Time period given by analyst is 3 months when Asian Paints price can reach defined target. ICICI Direct recommended to keep stop loss at Rs 2978

Asian Paints, incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 300713.30 Crore) operating in Building Materials sector.

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
Within the consumer discretionary space, the brokerage is bullish on Asian Paints as it offers favourable risk-reward at current juncture. Notably, declining crude oil prices will act as a tailwind for the paint companies.

Promoter/FII Holdings
Promoters held 52.63 per cent stake in the company as of 30-Sep-2022, while FIIs owned 18.51 per cent, DIIs 8.67 per cent.