Asian Paints shares surged by more than 0.75 percent each on the Bombay Stock Exchange (BSE) this past Friday, May 10, 2024, defying expectations following leading brokerages like Jefferies, CLSA, and Citi slashing their share price targets. This surprising upward movement came hot on the heels of the company’s disappointing January-March quarter results, which were reported just a day earlier.
Following its previous session close at Rs 2,711, the company’s stock saw a notable uptick, climbing by 0.77 percent to reach the day’s peak at Rs 2,735.00 on Friday.
At 9:31 am on Friday, the firm’s stock was trading up by 0.75 percent, or Rs 20.40, reaching Rs 2,731.40.
Asian Paints’ fourth-quarter year-on-year results
In the quarter under review, the company’s profit after tax (PAT) saw a marginal increase of one percent, reaching Rs 1,275 crore compared to Rs 1,258 crore year-on-year (YoY). Meanwhile, its revenue from operations dipped by one percent to Rs 8,731.0 crore in Q4, down from Rs 8,787.0 crore YoY.
In the fourth quarter, the company’s EBITDA experienced a decline of nine percent, falling to Rs 1,692.0 crore compared to Rs 1,864.0 crore in the same quarter of the previous fiscal year.
The company’s volume growth stood at 10 percent, surpassing research estimates which ranged between 5 to 6 percent.
Brokerages reduced their target
Jefferies take on Asian Paints (Current Market Price: Rs. 2710)
The brokerage has upheld its ‘underperform’ stance on the stock while revising the target downward to Rs 2,200 from Rs 2,500.
CLSA Take on Asian Paints
CLSA has reaffirmed its ‘sell’ recommendation on the stock, lowering the target to Rs 2,337 from Rs 2,410.
CITI Take on Asian Paints
The brokerage has upheld its ‘sell’ rating on the firm, while adjusting the target down to Rs 2,600 from Rs 2,640.
Also Read: SBI Q4 results
