Falling raw material costs to aid margin expansion for Asian Paints

Despite the raw material pressures, the company posted a 172 bps expansion in operating profit margins as compared to the year ago period, given operating leverage benefits

The country’s largest paint company, Asian Paints, is expected to be a twin beneficiary of higher sales volumes and improved profitability in the near term. Demand, which has been steady, is expected to see an increase in the festive season while margins should firm up on the back of declining raw material costs. Some of the optimism is reflecting on the stock prices of the paint maker which has registered a gain of nearly 5 per cent over the last six trading sessions, amidst a correction in both -- the benchmarks and the broader markets.  

The near term trigger for