Buy Asian Paints, target price Rs 3663: Geojit

Geojit has buy call on Asian Paints Ltd. with a target price of Rs 3663. The current market price of Asian Paints Ltd. is Rs 3189.85. Time period given by analyst is one year 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 305154.39 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 31-12-2021, the company reported a Consolidated Total Income of Rs 8599.05 Crore, up 18.87 % from last quarter Total Income of Rs 7234.21 Crore and up 24.87 % from last year same quarter Total Income of Rs 6886.39 Crore. Company reported net profit after tax of Rs 1016.33 Crore in latest quarter.

Investment Rationale
The brokerage expects APNT’s revenue and PAT to grow at a CAGR of 20%/22% respectively over FY21-FY24E on account of better volume growth and improved margins. The management expects the large part of the price increase will be visible from Q4 unless there is no significant increase in input prices. It maintains Buy rating with a TP of Rs 3,663, based on a P/E of 60x on FY24E EPS

Promoter/FII Holdings
Promoters held 52.63 per cent stake in the company as of 31-Dec-2021, while FIIs owned 20.48 per cent, DIIs 7.16 per cent.