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Asian Paints gains 3%, hits 8-month high on hopes of margin improvement

A fall in raw material prices from their recent peak and improved product mix will help drive EBITDA margin for Asian Paints in the coming quarters, analysts said

Increasing disposable incomes, surge in sales of high-end products and rapid urbanisation, among other things, are driving demand for luxury and premium paints. Source: Adobe Stock
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Increasing disposable incomes, surge in sales of high-end products and rapid urbanisation, among other things, are driving demand for luxury and premium paints. Source: Adobe Stock

SI Reporter Mumbai
Shares of Asian Paints hit an eight-month high of Rs 3,559, gaining 3 per cent on the BSE in Wednesday's intra-day trade, outperforming the market. The stock price rose, even in a weak market, as falling raw material costs are expected to aid margin expansion for the paint maker.

A fall in raw material prices from their recent peak, and improved product mix will help drive EBITDA margin for Asian Paints in the coming quarters, analysts said. The stock of the paint company also traded higher on hopes of higher demand ahead of the festive season.

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First Published: Sep 28 2022 | 2:16 PM IST

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