Asian Paints at lifetime high ahead of stock split

The company has fixed July 31, 2013 as the record date for the purpose of stock split.

Asian Paints has moved higher by nearly 3% at Rs 5,150, also its lifetime high on BSE, ahead of sub-division of its equity shares in the ratio of 1:10.

The stock opened at Rs 5,013 and hit a low of Rs 5,010 so far. The counter has seen heavy trading activities with a combined 114,790 shares changing hands so far against two week average of sub 70,000 shares.

Asian Paints has fixed July 31, 2013 as the record date for the purpose of ascertaining the names of the shareholders who would be entitled to receive 10 equity shares of Re 1 each for every 1 equity share of Rs 10 each of the company.

The stock has outperformed the market by surging 18% after the company fixed the record date for stock split on June 26. The benchmark Sensex had gained 7.3% during the same period.

Meanwhile, the board of directors of the company is schedule to meet on July 22, 2013, to consider the audited financial results of the company for the quarter ended June 30, 2013 (Q1).

Analyst at Edelweiss Securities expects the softness in TiO2 prices (down around 25% YoY and 2.2% QoQ) are likely to aid margin of the company during recently concluded quarter.

However, going forward rupee depreciation will have an impact, added analyst.