Asian Paints Q3 Review - Bolt Out Of The Blue, Says HDFC Securities
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HDFC Securities Report
Asian Paints Ltd. delivered a strong surprise in Q3 FY21 with top-line growth of 25% YoY.
Growth was all-round. domestic decorative business clocked 33/26% volume/value growth underpinned by -
1. Strong pent-up festive/marriage demand,
2. pick-up in Metros and Tier I, II cities (double-digit volume growth).
Projects and large institutional business performed well too.
Ebitdam expanded 440 basis point to 26.3% courtesy high gross margins and strong cost control. While the rebound in demand has certainly surprised us, normalisation trend is unlikely to change in a category like Paints.
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