Reuters Market Eye - HSBC has started coverage on Asian Paints with an "overweight" rating and a price target of 600 rupees, implying a 25 percent upside from current levels.
India's paints market is set to double every 6-7 years by volume and market leader Asian Paints is well placed to leverage growth, HSBC said in a note on Friday.
Asian Paints still stands to deliver volume growth of 9 percent in FY14, after impressive volume growth of 11 percent year-on-year in the first quarter of FY14, it said.
"While the valuation looks expensive, we believe it is actually pricing in relatively modest growth expectations," HSBC said. * At 9.30 a.m., shares in Asian Paints were up 0.5 percent at 482.30 rupees.
(Reporting by Indulal PM)
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app