Asian Paints Q2 Review - It's All About Ability Vs Willingness: ICICI Securities

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..ICICI Securities Report.Asian Paints has ~80% consumer mindshare, ~70% profit-pool share and ~60% value market share. ~1000bps gross margin decline (though for one quarter) is unprecedented. While management commented about "steep input cost inflation", we reckon that keeping lower profit pools and competitor signalling are important decision-drivers for Asian Paints (which we agree). We stay believers of the life-cycle value of the consumer concept, an important input for our DCF assumptions. Asian Paints says it plans to maintain operating margin (our interpretation) in band of 18-20% via (1) selective price hikes, (2) formulation and sourcing efficiencies (Rs 3 billion savings). We model higher price growth in FY22 and FY23 (vs. FY18-21). Maintain ADD..Click on the attachment to read the full report:.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 author entity 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.

Asian Paints Q2 Review - It's All About Ability Vs Willingness: ICICI Securities

Asian Paints Q2 Review - It's All About Ability Vs Willingness: ICICI Securities

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