Asian Paints: Why this paints stock tumbled 9% today?
Shares of Asian Paints Ltd tumbled 9 per cent in Monday’s trade, as the paints maker’s September quarter results came in weaker than peers. Analysts said volumes decline of 0.5 per cent year-on-year, even as peers recorded volume growth of 3-4 per cent. Sales and Ebitda fell sharply, worrying analysts.
Nomura India cut its FY25-FY27 EPS estimates by 13 per cent each to factor in the weak results. It rolled forward its estimates to September 2026 and valued Asian Paints at a P/E of 45 times, 20 per cent below its past 10-year average).
“Hence, we cut our target price to Rs 2,500 (against Rs 2,850 previously). We forecast an EPS CAGR of 12 per cent over FY25-27F. We maintain our Neutral rating,” it said.
The stock fell 9.3 per cent…
