Asian Paints - Colourful Q3! Strong Volume Growth Was A Surprise: Dolat Capital 
Asian Paints container sit outside a hardware shop in Mumbai (Photo: BloombergQuint)

Asian Paints - Colourful Q3! Strong Volume Growth Was A Surprise: Dolat Capital 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Asian Paints Ltd.’s Q3 FY21 revenues, EBITDA and APAT came ahead of our estimate as pent-up and festive demand was higher compared to our expectation. The company witnessed 33% volume growth during the quarter.

International Business posted 22.4% growth as Asia and ME posted strong double digit growth; Ethiopia, Bahrain and Indonesia were laggards.

Considering improvement in demand, we believe that the growth rate would remain high going ahead as well.

We believe that the volume growth in the decorative segment should remain high, especially in rural areas, given better crop production this season. Further, ongoing government investments in rural infrastructure, and house construction in rural areas should help acceleration. In the long term, we remain optimistic about the unorganised to organised shift in the paint industry. APL, being a leader in the category, is likely to benefit the most from the shift.

Click on the attachment to read the full report:

Asian Paints (Q3FY21 Result Update)-21-Jan-21.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.