Asian Paints needs fresh coat as margin pressures build up in markets

As competition intensifies, brokerages turn pale on paint maker's stock

A weaker-than-expected sales performance, concerns about higher competitive intensity in the current year, and earning cuts by some brokerages have weighed on the stock of the country’s largest paint maker, Asian Paints.
 

While the Q3 volume show was slightly below expectations, the company’s operational and bottom line beat estimates, benefiting from the falling raw material costs. The stock ended the day with a decline of over 2 per cent at Rs 3,175 apiece.  The company reported a decorative paints volume growth of 12 per cent over the year-ago quarter, which was marginally below brokerage estimates and was led by double-digit