Incremental upsides of Asian Paints looks to be expensive: Avinnash Gorakssakar, Miintdirect.com

In a chat with ET Now, Avinnash Gorakssakar, Head of Research, Miintdirect.com, shares his views on Asian Paints:

ET Now: What is your view on Asian Paints?

Avinnash Gorakssakar: The numbers have been much better than what the street expected. In a difficult quarter, the company has managed to show good volume growth and margin improvement. However, sustaining these margins in the near-term is definitely a question.

Currently at the kind of valuations of Asian Paints, the incremental upsides (at a multiple of more than 34-35 times) looks to be a tad expensive. Hence, I would prefer to wait. Probably, in third quarter, we could see the volume growth coming off—the stock could correct. Hence, it is avoidable at the current levels.