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Systematix Report
Asian Paints Ltd. remained in focus after brokerage firm Systematix retained its 'Buy' rating on the stock and raised its target price to Rs 3,285 from Rs 3,105 following a stronger-than-expected performance in the June quarter.
The revised target implies an upside potential of nearly 19% from the current market price of Rs 2,761.
The brokerage highlighted that Asian Paints' strong volume growth performance for a fourth straight quarter cements an upward shift in the trajectory; nevertheless, it factors in near-term volume growth at the lower end of the guided range in view of the base now turning high.
Volume resilience despite cumulative price hikes of 13-14% also attest to Asian Paints's robust pricing power and brand equity as the market leader.
Adding another layer to growth is the now-positive mix. While volume growth is monitorable, Systematix believe the trajectory remains firm, and the industry's structural demand elasticity (home maintenance an imperative) would result in FY27E volumes growing +8% YoY.
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