Asian Paints gains 3%, hits 8-month high on hopes of margin improvement

Shares of Asian Paints hit an eight-month high of Rs 3,559, gaining 3 per cent on the BSE in Wednesday's intra-day trade, outperforming the market. The stock price rose, even in a weak market, as falling raw material costs are expected to aid margin expansion for the paint maker.

A fall in raw material prices from their recent peak, and improved product mix will help drive EBITDA margin for Asian Paints in the coming quarters, analysts said. The stock of the paint company also traded higher on hopes of higher demand ahead of the festive season.

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