Anand Rathi upgrades Asian Paints to a 'buy' rating; Here's why
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.
The stock's rating has been raised by the brokerage firm to 'buy', with a target price of 3,260 rupees.
It anticipates demand to increase in contrast to weak Q3FY23 volumes based on industry interaction and channel checks.
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.
According to the brokerage report, the paint firms have consistently created value over the last three, five, ten, and twenty years.
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.
Rich valuations of the company is viewed as a constraint for the brokerage, though.
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