Hold Asian Paints, target price Rs 2900: ICICI Securities

ICICI Securities has hold call on Asian Paints with a target price of Rs 2900. The current market price of Asian Paints is Rs 2812.45.


Asian Paints, incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 270105.30 Crore) operating in Building Materials sector.

Asian Paints key Products/Revenue Segments include Paints, Enamels, Varnishes & Black, Other Operating Revenue and Sale of services for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 8723.30 Crore, up 1.99 % from last quarter Total Income of Rs 8553.04 Crore and up 1.44 % from last year same quarter Total Income of Rs 8599.05 Crore. Company has reported net profit after tax of Rs 1061.41 Crore in latest quarter.

The company’s top management includes Mr.Deepak Satwalekar, Mrs.Vibha Paul Rishi, Mr.R Seshasayee, Mrs.Pallavi Shroff, Mr.Suresh Narayanan, Ms.Nehal Vakil, Mr.Jigish Choksi, Ms.Amrita Vakil, Mr.Malav Dani, Mr.Ashwin Dani, Mr.Amit Syngle, Mr.Manish Choksi, Mr.Milind Sarwate. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2022, the company has a total of 96 Crore shares outstanding.

Investment Rationale
The brokerage models sales and earnings CAGR of 15% and 18.2% respectively, for FY22-FY25E. Further, it maintains hold call on the stock with a revised DCF-based TP of Rs 2,900 (was Rs3,200 earlier). Lower-than-expected urban recovery and potential execution challenges in new categories are key risks.

Promoter/FII Holdings
Promoters held 52.63 per cent stake in the company as of 30-Sep-2022, while FIIs owned 18.56 per cent, DIIs 8.67 per cent.