Asian Paints fell 3.86% to Rs 2869.50 after a foreign broker downgraded the stock to 'sell' from 'buy' citing rising competition.
Asian Paints has been downgraded to "sell" from its previous "buy" rating by a foreign brokerage firm. This decision follows the heightened competition triggered by Grasim's "Birla Opus" launch. The brokerage has also reduced Asian Paints' price target to Rs 2,425 from Rs 3,215, expressing uncertainty about its leadership in the paints market following the expected industry shake-up.Grasim Industries, a part of the Aditya Birla Group, recently entered the paints business, three years after announcing plans to do so. The chairman, Kumar Mangalam Birla, has established an ambitious goal for the paints business to achieve profitability and surpass Rs 10,000 crore in revenue within the next three years.
Asian Paints is India's leading paint company and ranked among the top ten decorative coatings companies in the world. Asian Paints is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home dor, bath fittings and providing related services.
The paint major's consolidated net profit jumped 34.96% to Rs 1,447.72 crore in Q3 FY24 as against Rs 1,072.67 crore recorded in Q3 FY23. Net sales grew by 5.43% year on year to Rs 9,074.94 crore in Q3 December 2023.
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