Motilal Oswal: Asian Paints’ Recovery Sharper Than Expected In Q1, Commentary Healthy
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
While Asian Paints Ltd. reported sharp YoY declines of 42.7%, 58.2%, and 67.4% in sales, Ebitda, and profit after tax, respectively, the numbers were still better than expected given the double-digit volume growth witnessed in June 2020. Importantly, commentary on recovery sustaining is also reasonably strong.
Despite healthy volume growth, earnings growth has been weak for several years now, which is likely to continue going ahead. Nevertheless, the likelihood of sharp earnings decline, as feared earlier, may not materialise.
Therefore, it is possible that Asian Paints, unlike other discretionary peers, would emerge relatively unscathed from the Covid-19 crisis. With better than expected recovery, Asian Paints continues to remain market leader in a category with attractive long-term potential.
Click on the attachment to read the full report:
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 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.