Asian Paints Share: Asian Paints was once considered the best stock. Everyone wanted to invest money in it. But after the weak results of the September quarter, the shares of Asian Paints collapsed. The price of its shares reached the lowest level in a year. Let us know what is the reason for the huge fall in the shares of Asian Paints.
Asian Paints Share: The quarterly results of Asian Paints were extremely bad. The company performed from bad to worse on every front. Its effect is also visible in its shares today. Asian Paints is a large cap company, but its stock fell by about 10 percent today like a small cap company. In early trade, it was trading at Rs 2,514.10 with a decline of 9.22 percent.
Financial performance of Asian Paints
The September 2024 quarter was no less than a nightmare for Asian Paints. Its profit fell by 44 percent due to weak demand. At the same time, revenue has also declined by more than 5 percent. If we talk about margin and domestic volume growth, the company has disappointed a lot there too.
In the September quarter, Asian Paints’ consolidated net profit was Rs 694.64 crore, which was Rs 1,205.42 crore a year ago. The company’s revenue fell by 5.3 percent to Rs 8,003.02 crore, while it was Rs 8,451.93 crore last year. Consolidated profit before depreciation, interest and tax (PBDIT) fell by 27.8 percent to Rs 1,239.5 crore.
Brokerage’s opinion on Asian Paints
Brokerage has also become disillusioned with Asian Paints. Global brokerage firm Jefferies has given Asian Paints an Underperform rating. It has reduced the target price to Rs 2,100 per share. JPMorgan has also given Asian Paints an Underweight rating. It has also reduced the target price from 2,800 per share to 2,400.
Nomura has given a Neutral rating and has set a target price of Rs 2,500 per share. At the same time, Morgan Stanley has given an Underweight rating to Asian Paints. It has given a target price of 2,522 per share. All brokerage firms say that the entire paint industry is under pressure, but Asian Paints has performed weaker than its rival companies.
The condition of Asian Paints shares
The trend of decline in Asian Paints shares has been continuing for a long time. Talking about the last one year, it has given a negative return of 18 percent. At the same time, investors have suffered a loss of 12.34 percent from the company in the last one year. In one month, it has given a negative return of about 17 percent. Its 52-week low is Rs 2,506.00, which it has made today. At the same time, the high is Rs 3,422.95, which the company made in September.
Asian Paints is India’s largest and Asia’s fourth largest company in terms of decoration. But, after today’s huge fall, the market cap of Asian Paints has also come down to Rs 2.41 lakh crore.
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