- Asian Paints announced a 6–8% price hike across its portfolio starting April 10
- Shares rose over 3% early Tuesday, trading near Rs 2,200 apiece on Nifty 50
- Price increases will roll out in two phases covering core and extended categories
Shares of Asian Paints Ltd. rose over 3% in early trade on Tuesday, March 24, after the company announced a 6–8% price hike across its portfolio, signalling a renewed push to offset rising input costs.
Asian Paints' shares are trading around 3.5% at nearly Rs 2,200 apiece, as of 9:20 am. The stock is the second top gainer on the Nifty 50 today in early market trading.
The increase, which will be rolled out in two phases starting April 10, comes amid a fresh uptick in raw material prices, largely linked to ongoing geopolitical uncertainty and volatility in crude oil markets. Brent crude, a key input proxy for the sector, edged higher again on Tuesday after a sharp 10% decline in the previous session.
The first round of hikes will take effect from April 10 and cover core categories such as emulsions, enamels, primers, distempers and the Neo Bharat range. A second round, scheduled from April 21, will extend to the rest of the portfolio, including waterproofing solutions under SmartCare, tile adhesives and wood finishes.
Brokerages, however, remain divided on what the move signals. Macquarie, which maintains an Outperform rating on the stock with a target price of Rs 3,100, views the hike as part of a broader industry pattern. The brokerage noted that paint companies typically pass on input cost inflation through calibrated price increases over time, suggesting that margin pressures are cyclical rather than structural.
Morgan Stanley takes a more cautious view. The brokerage, which has an Underweight rating on Asian Paints with a target price of Rs 2,126, flagged that demand trends remain weak, particularly in the retail segment. Dealer checks indicate that volumes have largely remained flat, with no clear signs of recovery.
It also noted that the company is attempting to limit the extent of price hikes to avoid disrupting demand, highlighting the tightrope between protecting margins and sustaining volumes.
The sector had earlier seen modest price increases of 2–3%, with further hikes anticipated. Asian Paints' latest move suggests a more decisive shift toward margin protection—but with demand still uneven, the effectiveness of this strategy will be closely watched.
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