Asian Paints Q3 Results: Buy, Sell, or Hold?

Asian Paints reported a 23% year-over-year decline in net profit to ₹1,110 crore for Q3, attributed to weak urban demand. Revenue fell 6% to ₹8,549 crore, and the share price dropped by 5%. Despite the challenges, the company saw positive growth in its international business and industrial sector. Analysts have mixed views on the stock. Nuvama maintains a ‘Buy’ rating but lowered its target to ₹3,000, citing long-term growth potential. On the other hand, Goldman Sachs issued a ‘Sell’ rating with a target of ₹2,275, pointing to the current weak demand and margin pressures.

The company’s management highlighted efforts to improve efficiency and cut costs, which they believe will help mitigate the impact of the current challenges. Asian Paints also continues to focus on expanding its product portfolio and enhancing its digital capabilities to better serve its customers. They remain optimistic about the future, with expectations of a rebound in demand as economic conditions improve. Overall, investors must weigh the short-term pressures against the company’s long-term growth strategies when deciding whether to buy, hold, or sell the stock.