Buy Asian Paints, target price Rs 3570: ICICI Direct

ICICI Direct has buy call on Asian Paints with a target price of Rs 3570. The current market price of Asian Paints Ltd. is Rs 3174.8. Time period given by analyst is 3 months when Asian Paints Ltd. price can reach defined target.

Asian Paints Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 304981.73 Crore) operating in Building Materials sector.

Asian Paints Ltd. key Products/Revenue Segments include Paints, Enamels, Varnishes & Black, Other Operating Revenue and Sale of services for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 7234.21 Crore, up 27.48 % from last quarter Total Income of Rs 5674.97 Crore and up 33.16 % from last year same quarter Total Income of Rs 5432.86 Crore. Company reported net profit after tax of Rs 594.97 Crore in latest quarter.

Investment Rationale
The brokerage expects the stock to maintain positive bias and head higher towards Rs 3570 levels as it is the 123.6% external retracement of the entire correction (Rs 3505-2858)

Promoter/FII Holdings
Promoters held 52.8 per cent stake in the company as of March 31, 2021, while FIIs held 20.7 per cent, DIIs 7 per cent and public and others 19.5 per cent.