Asian Paints gained 3 per cent to Rs 2,090, surpassing its previous high of Rs 2,087.75, hit on September 10, 2020. Berger Paints, too, rose 3 per cent to Rs 607.80, also its all-time high on the BSE. Earlier, the stock hit a high of Rs 599.50 on September 29, 2020. In comparison, the S&P BSE Sensex was up 0.85 per cent at 39,305 points at 10:52 am.
Asian Paints is scheduled to announce its July-September quarter (Q2FY21) results on October 22, 2020. The board will also consider the payment of interim dividend, if any, for the financial year ending March 31, 2021.
After a complete washout in April’20 due to extended lockdown, the decorative business segment witnessed improving business conditions over the next two months – May and June. Thus, while the quarter ended in a negative territory, the business registered a healthy double digit volume growth in the month of June’20 to end the quarter on a promising note.
Asian Paints had reported a better-than-expected recovery of 14 per cent growth in June 2020 despite large exposure to metro/tier-I cities. Profitability during April-June quarter (Q1FY21) across businesses was well supported by the softer raw material prices and the various cost control measures being actively pursued by the Management.
“Asian Paints is a leader (60 per cent market share) in the lucrative decorative paints industry and remains preferred long-term play on discretionary consumption growth in India and paint sector owing to the company’s competitiveness post COVID-19 position should be much stronger as transition from unorganised to organised player should accelerate paint demand, as the situation eases, demand should witness uptick owing to festive quarter,” analysts at JM Financial said in a report.