Street View: Strong volumes to support Asian Paints, margins in focus

Asian Paints

01/06/2026 05:35

** India's Asian Paints ASPN.NS posted 69% rise in fourth-quarter net profit, helped by domestic volume growth in its core decorative paints segment
** Shares up as much as 3.82%, last up 2.26% at 2,732.6 rupees 

DEMAND RISKS AND COST PRESSURES REMAIN KEY WATCHPOINTS    
** Nomura ("buy", PT:3,600 rupees) says better mix and cost savings along with softer crude, should keep margins at 18–20%, with FY27 sales growing in the high teens despite still-high but easing competition
** Jefferies ("buy", PT: 3,300 rupees) says steady demand momentum, 8–10% volume rise guidance for FY27 should drive growth, flags margins to remain a key monitor amid high competition and input cost volatility
** Goldman Sachs ("sell", PT: 2,575 rupees) flags macro headwinds as a key watch, with rising fuel and consumer prices potentially weighing on paint demand and leading to downtrading
** HSBC ("hold", PT: 2,550 rupees) says price hikes could impact both the quality and quantity of demand alongside behavioural changes in consumption patterns


 (Reporting by Devika Nair in Bengaluru)
 ((Devika.MadhusudhananNair@thomsonreuters.com;))