Motilal Oswal: Asian Paints Q2 - Strong Beat On Estimates; Demand Improving Further
Open tins of red paint pass along the production line at a paint and coatings factory. (Photographer Jasper Juinen/Bloomberg)

Motilal Oswal: Asian Paints Q2 - Strong Beat On Estimates; Demand Improving Further

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.

Motilal Oswal Report

Asian Paints Ltd. witnessed consistent month-on-month demand improvement in Q2 FY21.

This augurs well for growth in H2 FY21 unless a second wave of Covid-19 plays spoilsport.

With stable material cost as well as currency, elevated margins also appear likely to sustain over the next few quarters.

However, valuation of 58.4 times FY22E earnings per share appears to be fully capturing the growth revival.

This is despite assuming 20% profit before tax growth and 21.5% profit after tax growth in FY22E, nearly 3 times the profit before tax compound annual growth rate over FY16-FY21E.

Click on the attachment to read the full report:

Motilal Oswal Asian Paints Q2FY21 Result Update.pdf


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