Q4FY23 Preview: Asian Paints: Revenue seen at Rs. 88,597 million, PAT at Rs. 11,425 million

9 May 2023 , 04:29 PM

Result date: 11^th May, 2023

Recommendation: Reduce

Target price: Rs 2,700

Analysts at IIFL Capital Services expect Asian Paints to register 12.3% growth in revenue over the year-ago quarter. Volume growth is pegged at 5-6% amid continued momentum in both decorative and industrial paints segments.

EBITDA margin could expand marginally by ~30 basis points sequentially to 19%. Healthy operating leverage and improvement in gross margin could aid operating margins.

The company’s Profit After Tax (PAT) could grow 18.3% as compared to the year-ago quarter.

Important management insights to watch out for:

• Demand outlook across Metros/Tier 2/3 towns
• Outlook on movement in input costs, pricing actions
• Competitive intensity

Rs. Million	March 2023 estimates	YoY change
Revenue	88,597	12.3%
EBITDA	16,826	16.6%
Profit After Tax	11,425	18.3%

Source: IIFL Research