Why Nuvama Retains ‘BUY’ on Asian Paints
Nuvama Rating: BUY | Target Price: ₹2,935
Key Highlights from Management
- Market Share & Margins: Priority is to protect market share while maintaining 18–20% EBITDA margin in the mid-to-long term.
- Demand Outlook: Demand is stabilizing with a gradual revival expected. Rural markets remain strong; urban markets are showing steady recovery.
- Competition: Competition is rationalizing.
- Raw Material Costs: RM costs are benign and expected to remain stable through FY26.
- Industrial Business: Strong performance with 8.8% YoY growth in Q1FY26.
Nuvama’s View
- Q2 expected to sustain momentum due to urban demand recovery, stable RM costs, and early Diwali.
- H2FY26 likely to outpace H1FY26 in terms of growth.
- GST cuts in other categories may lead to a slight uptick in overall paints consumption.
- Retain ‘BUY’ rating with a target price of ₹2,935 per share.
About Asian Paints
Asian Paints is India’s leading paints and coatings company, with a strong presence in decorative, industrial, and protective coatings. Known for its wide distribution network, brand recall, and innovation in products, Asian Paints continues to maintain its leadership in the market. The company focuses on sustainable growth, cost efficiency, and leveraging urban and rural demand trends.
Investor Takeaways
- Urban demand revival and strong rural consumption could drive growth in H2FY26.
- Stable raw material costs provide margin protection.
- Industrial business continues to contribute positively to overall performance.
- Nuvama’s ‘BUY’ rating indicates potential upside from current levels.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services
