Shares of Asian Paints fell 3% to Rs 2,674 on the BSE on Thursday, even as multiple brokerages raised their target prices after the paint major reported better-than-expected earnings for the first quarter.
The stock had closed nearly 1% higher on Wednesday after the company reported a 40% year-on-year (YoY) increase in consolidated net profit to Rs 1,539 crore for Q1 FY27, compared with Rs 1,100 crore in the corresponding quarter of the previous financial year. Consolidated net sales rose 18% YoY to Rs 10,521 crore.
Revenue from operations also increased around 18% YoY to Rs 10,542 crore during the quarter under review. "Asian Paints started FY27 on a strong note, building on the momentum of the previous quarter and delivering a robust performance across businesses," said Amit Syngle, Managing Director and CEO of the company.
He added that the decorative business posted healthy volume growth of 9%, supported by calibrated pricing actions, resulting in a robust value growth of 16.6%. The industrial coatings business sustained its mid-teen growth trajectory, with value growth of more than 16%.
"Amid an environment that remained uncertain, the performance reflects our innovation-led strategy, deeper consumer connect, and continued strengthening of our service propositions in the market," he said.
With raw material prices remaining volatile, Asian Paints will stay agile and continue to focus on technological innovation and customer centricity to maintain its market leadership, Syngle added.
Also read | Asian Paints Q1 Results: Net profit surges 40% YoY to Rs 1,539 crore
Nomura on Asian Paints
Calling Asian Paints' Q1 earnings "out of the ordinary," Nomura maintained its Buy rating and raised its target price to Rs 3,750 from Rs 3,600, implying an upside potential of about 36%.
The brokerage said Asian Paints delivered a blowout quarter, supported by strong demand and a healthy volume growth outlook despite a high base and intense competition. It also raised its earnings estimates to reflect the strong Q1 performance and recent price hikes.
"We believe peak competition is behind us, and disruption was few and far between despite significant investments by new entrants, indicating a strong moat for Asian Paints," Nomura said.
Goldman Sachs on Asian Paints
Goldman Sachs raised its target price to Rs 2,725 from Rs 2,575, while maintaining its Sell rating. The revised target implies an upside potential of around 7%.
The brokerage said both revenue and EBITDA comfortably beat estimates, with stronger-than-expected margins driving the earnings outperformance, according to ET Now.
Motilal Oswal on Asian Paints
Motilal Oswal retained its Neutral rating with a target price of Rs 3,050, implying an upside potential of about 11%.
The brokerage said revenue was broadly in line with estimates, while margins exceeded expectations. It expects revenue growth to remain strong, supported by double-digit price hikes, but sees limited margin expansion in the near term due to input cost inflation and intense competition.
It added that the company is focusing on product innovation, brand building, regionalisation, and execution excellence to counter competitive pressures.
Asian Paints share price
Asian Paints shares have gained about 3.5% over the past week and 5% in the last month, closing at Rs 2,758.40 on the NSE on Wednesday. The stock has delivered only marginal gains so far in 2026, as the sharp rally in crude oil prices triggered by the Middle East conflict weighed on sentiment.
Over the longer term, the stock has risen more than 14% in the past year but is down 19% over three years and 7% over five years.
Also read | For Asian Paints, green is not just a colour, but a worthful way of life
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
