Anand Rathi upgrades Asian Paints to a ‘buy’ rating; here's why

Anand Rathi upgrades Asian Paints to a 'buy' rating; Here's why {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

Anand Rathi is bullish on Asian Paints due to the demand expected to increase moving forward, the creation of value for investors, and consistent earnings growth. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

The stock's rating has been raised by the brokerage firm to 'buy', with a target price of 3,260 rupees. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

It anticipates demand to increase in contrast to weak Q3FY23 volumes based on industry interaction and channel checks. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

The prolonged monsoon and the early festivities slowed Q3FY23 volume growth, which rebounded in December and is anticipated to be robust, according to the management. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

According to the brokerage report, the paint firms have consistently created value over the last three, five, ten, and twenty years. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

The company has lost nearly 7% of its value so far in 2023, but the brokerage thinks the decline in price provides an entry point. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

Rich valuations of the company is viewed as a constraint for the brokerage, though. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}

Click here to read the entire report. Click here for more market related stories. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(1)"},{"transform":"scale(1.5)"},{"transform":"scale(2)"}]}