Asian Paints stock hits an 8-month high

28 Sep 2022 , 03:18 PM

In Wednesday’s intraday session on the BSE, shares of Asian Paints increased by more than 2%, exceeding the market and reaching an eight-month high of Rs3,559. As reducing raw material costs is anticipated to support the paint manufacturer’s profit expansion, the stock price increased even in a challenging market.

In the upcoming quarters, experts predict that Asian Paints’ EBITDA margin would increase due to a decline in raw material costs from their previous highs and a better product mix. In anticipation of greater demand before the holiday season, the paint company’s shares also increased in value.

The stock had been trading at its highest price since January 2022. It rose to a record high of Rs3,588 on January 10. After reporting a high consolidated net profit gain of 80.39% year-over-year (YoY) to Rs1,036 crore for the first quarter ended on June 30, 2022, Asian Paints has risen 30% in the past three months. This is due to the business expanding both in volume and value terms. Its operational revenue climbed by 55% YoY to Rs8,579 crore during the quarter.

Asian Paints’ domestic decorative division had strong sales growth for the quarter and strong customer demand. One of the largest volume growths in the previous six quarters was observed during the quarter. The company also had strong volume and value growth over the course of the previous four years.

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