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Asian Paints, Berger Paints, Bajaj Finance hit lifetime highs

Finolex Ind, IndusInd Bank, KPR Mills, Supreme Industries and Cholamandalam Investment from the BSE-500 index have touched their respective lifetime highs.

SI Reporter  |  Mumbai 

Asian Paints, Berger Paints, Bajaj Finance hit lifetime highs

Asian Paints, Berger Paints India, Bajaj Finance, Finolex Industries, IndusInd Bank, KPR Mills, Supreme Industries and Cholamandalam Investment and Finance Company from the BSE-500 index have touch their respective lifetime highs on the Bombay Stock Exchange (BSE) in intra-day trade on Monday.

Asian Paints hits a record high of Rs 957, up 1.5%; extending its 5% gain in past three trading sessions post March 31, 2016 (Q4FY16) results. The company posted 20% year on year (YoY) jump in its consolidated net profit at Rs 409 crore for the quarter ended March 31, 2016 (Q4FY16), on the back of healthy operational income.

Income from operations grew 12.3% at Rs 3,971 crore on YoY basis. The company said the profitability improved mainly driven by lower material cost during the year.

However, analysts maintain ‘Neutral’ rating on the stock due to expensive valuation.

“We are raising our estimates marginally due to a possible pick-up in demand off a low base on account of the pay commission/OROP implementation. Asian Paints enjoys a strong position in the decorative paints industry, backed by its unparalleled supply chain. However, at 42.2x FY17E and 38x FY18E, we find the stock’s valuations expensive,” Motilal Oswal Securities said in a results update.

Bajaj Finance has moved higher by 3% to Rs 7,852 on the BSE. Thus far in 2016, the stock rallied 31% as compared to 3% decline in the benchmark S&P BSE Sensex.

The company schedule to announce its Q4FY16 results on May 24 is likely to continue with its robust performance in terms of assets under management (AUM) growth. The company had posted 41% YoY growth in AUM and 58% jump in net profit during the quarter ended December 31, 2015 (Q3FY16).

“Bajaj Finance is likely to continue healthy AUM growth of 35% YoY led by high growth in consumer, SME and rural financing. We expect net interest income growth of 43% yoy and NIMs (Calc) to contract by 233 bps qoq to 9.7% mainly to seasonality of high growth in consumer durables during Q3FY16,” IndiaNivesh Securities said in a results preview.

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First Published: Mon, May 16 2016. 11:50 IST