HDFC Securities: Asian Paints - Standing Tall, Q2 Recovery Stronger Than Expected
A worker sprays paint onto a shipping container. (Photographer: Qilai Shen/Bloomberg)

HDFC Securities: Asian Paints - Standing Tall, Q2 Recovery Stronger Than Expected

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.

HDFC Securities Report

Asian Paints Ltd.’s Q2 FY21 revenue grew 5.9% YoY to Rs 53.5 billion (our estimate Rs 52.4 billion) as recovery was stronger than expected.

Decorative business volume grew 11% YoY underpinned by encouraging pick up in emulsions (low-end and luxury alike), undercoats and waterproofing.

Demand in Tier- 2/3/4 towns have passed the pre-Covid-19 level, and metros/Tier 1 cities continue to improve progressively (70-80% of pre-Covid-19 sales).

Gross margins expanded 197 basis points to 44.4% (in-line), aided by benign raw material prices and better sourcing efficiency.

Click on the attachment to read the full report:

HDFC Securities Asian Paints Q2FY21 Results Update.pdf

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