Asian Paints Q2 Review - Temporary Margin Blip Provides Entry Opportunity: Prabhudas Lilladher

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..Prabhudas Lilladher Report.Asian Paints Ltd.'s Q2 gross margins were 140 bps lower than those achieved during Lehman crisis and we expect gradual margin recovery to set in from Q3 itself with significant pickup in margins in FY23.APNT continues to remain a strong structural play given 1) double digit decorative paints industry growth 2) innovation and marketing to ensure sustained leadership position and 3) scale up in emerging segments.We are changing FY22/FY23/FY24 EPS by -23.9%/-7.3%/2% on account of unprecedented input cost pressures, heightened volume focus in decorative paints and a move from “share of surface” to “share of space” in Homes. We continue to remain positive on long term growth drivers led by 1) Market share gains in decorative paints from both organised and unorganised players due to strong focus on economy segment.2) Increased distribution with addition of 40,000+ retail points. 3) Innovations and focus on high growth waterproofing/ construction aids segment 4) Ramp up in Kitchen & Bath business (PBT breakeven in Q2) 5) Foray into designer tiles and home décor business enabling Asian Paints to emerge as a complete home solution company..Click on the attachment to read the full report:.DISCLAIMERThis 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.

Asian Paints Q2 Review - Temporary Margin Blip Provides Entry Opportunity: Prabhudas Lilladher

Asian Paints Q2 Review - Temporary Margin Blip Provides Entry Opportunity: Prabhudas Lilladher

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