Asian Paints lost 2.34% to Rs 865.35 at 14:27 IST on BSE on reports that a foreign brokerage has downgraded the stock to "neutral" from "buy", citing expensive valuation.
The brokerage reckons that there is not much earnings visibility for the company once crude oil price stabilises. The brokerage has reportedly trimmed its revenue growth forecast for the company. The brokerage expects improvement in the company's EBITDA (earnings before interest, taxation, depreciation and amortization) margin from FY 2016. It, however, does not expect a significant expansion in profit margins.Meanwhile, the S&P BSE Sensex was down 48.59 points or 0.2% at 24,502.58
On BSE, so far 42,193 shares were traded in the counter as against average daily volume of 91,206 shares in the past one quarter. The stock hit a high of Rs 881.15 and a low of Rs 863.75 so far during the day. The stock had hit a record high of Rs 924.65 on 5 August 2015. The stock had hit a 52-week low of Rs 693 on 16 June 2015. The stock had underperformed the market over the past one month till 15 March 2016, rising 3.31% compared with Sensex's 4.23% rise. The scrip had, however, outperformed the market in past one quarter, rising 1.12% as against Sensex's 3.04% fall.
The large-cap company has equity capital of Rs 95.92 crore. Face value per share is Re 1.
Asian Paints' consolidated net profit rose 25.8% to Rs 463.28 crore on 13.9% rise in net sales to Rs 4102.95 crore in Q3 December 2015 over Q3 December 2014.
Asian Paints is India's largest and Asia's third largest paint company. The company operates in 19 countries and has 26 paint manufacturing facilities in the world servicing consumers in over 65 countries.
Powered by Capital Market - Live News