Asian Paints: Investors should look at the stock for long term on dips

In addition to paints, construction chemicals and home decor could add to incremental growth

The Asian Paints stock gained 1.4 per cent on expectations of a faster recovery in paints and growth opportunities in the home decor and construction chemicals business. Chirag Shah and Nitin Gupta of CLSA believe the paints segment is witnessing a relatively quick recovery within the consumer discretionary space. 

According to their channel checks, strong rural demand has helped boost recovery for paints, in general, and Asian Paints, in particular. They have revised their volume growth estimates for FY21 from a fall of 15 per cent earlier to decline of 6 per cent now. Asian Paints had recorded a volume dip