Asian Paints declines for 11th straight day on uncertain demand outlook

Analysts at Goldman Sachs see significant risks to sales growth as they expect consumers to down-trade and extend the re-painting cycle given the macroeconomic slowdown.

Shares of Asian Paints hit a seven-week low of Rs 1,512, down 4 per cent on the BSE on Tuesday on concerns of demand destruction in the near term due to the outbreak of coronavirus. The stock was quoting lower for the 11th straight trading day and was at its lowest level since March 25, 2020.

Since April 27, in the past 11 trading days, the stock of Asian Paints has underperformed the market by falling 18 per cent, as compared to a 1.8 per cent decline in the S&P BSE Sensex.

The slight improvement in paint demand