26 Feb, 24

Asian Paints share price: global brokerages sharply cut their target prices

Asian Paints share price: Brokerage CLSA has slashed Asian Paints share price to INR 2,425 from INR 3,215 earlier, a steep 24.57 per cent cut. Asian Paints was deep in the red on Monday, February 26, as most global brokerages sharply cut their target prices for the counter. The entry of Grasim Industries in the […]

By Zimble Digital

Asian Paints share price: Brokerage CLSA has slashed Asian Paints share price to INR 2,425 from INR 3,215 earlier, a steep 24.57 per cent cut.

Asian Paints was deep in the red on Monday, February 26, as most global brokerages sharply cut their target prices for the counter.

The entry of Grasim Industries in the paint sector is also set to intensify the competition with Asian Paints.

CLSA downgraded Asian Paints to ‘Sell’ from ‘Underperform’ and in its note, the global brokerage said that the competitive intensity in the paint sector is likely to heat up significantly with Grasim Industries’ Birla Opus.

Goldman Sachs, too cut the target price to INR 2,825 from INR 3,300 earlier. It has also cut the EPS estimates for FY25 and FY26 by 5.2 per cent /10.9 per cent, respectively, and lowered target multiples to 52 times from 58 times earlier. The brokerage added that Birla Opus’ paint strategy details are way more comprehensive than earlier assumed.

Macquarie, on the other hand, has maintained an ‘Outperform’ rating on the counter, with a target price of INR 4,000.

The brokerage highlighted that Grasim Industries has shared a focus on driving distribution based on product quality and deeper contractor/painter connect.

The brokerage prefers Asian Paints as it believes that smaller companies, such as Berger Paints, would be relatively more affected by the entry of the new player.

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Asian Paints share price: global brokerages sharply cut their target prices

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