Asian Paints Q4 Review - Negative Surprise At Margin Level, But Attractive Valuation; Buy: Dolat Capital

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Asian Paints Ltd.’s Q4 FY24 revenue/adjusted profit after tax were in-line with our estimates. The company reported 1.9% value de-growth as a result of price pass on during the quarter and 10% volume growth in the decorative segment. Going ahead, volume growth would be a key driver for revenue growth. Gross margin expanded by 180 basis points primarily led by softening of raw material prices. Crude oil (1.9% YoY) and TiO2 (3.4%YoY) posted deflation during the quarter. On four-year basis, Asian Paints reported 19.4/18.1% volume and value compound annual growth rate. We expect double digit volume growth in the long run from-industry growth,strong leadership positioning planned capacity addition over four-five years and ongoing acquisitions. We downward revise our FY25/26E EPS estimates by 7.8/5.1% at Rs 56.6/63.6 to factor in Q4 performance, less room for price hikes and margin pressures. Upgrade to ‘Buy’ from Accumulate valuing at 52 times FY26E and arrive at target price of Rs 3,305. Attractive valuations at current market price..Click on the attachment to read the full report:.Asian Paints Q4 Results Review - Competitive Intensity To Define Future Course; Maintain Hold: Axis Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Asian Paints Q4 Review - Negative Surprise At Margin Level, But Attractive Valuation; Buy: Dolat Capital

Ebitda margin was a miss, revenue and adjusted profit after tax was in-line

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Asian Paints Q4 Review - Negative Surprise At Margin Level, But Attractive Valuation; Buy: Dolat Capital

Ebitda margin was a miss, revenue and adjusted profit after tax was in-line

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