Asian paints share price: Sharekhan revises price target to Rs 3000 after Q3 results
Asian Paints registered healthy all-round performance in Q3 FY21. Revenue grew by 25.2%, operating profit margin (OPM) expanded by 439 bps to 26.3% (led by higher gross margin and lower fixed cost), and PAT grew by 62%. Asian Paints domestic decorative paints business registered robust volume growth of 33% compared to 11% volume growth in Q2 FY21. This was aided by strong pent-up demand, led by deferment of re-panting activities coupled with strong festive and occasional demand.
Asian Paints stock is currently trading at 59x its FY2023E EPS. Sharekhan maintains Buy recommendation on the stock with a revised price target of Rs 3000 (valuing the stock at 65x its FY2023E EPS):