Preview: India's Asian Paints marginally down ahead of Q3 results

Berger Paints India

17/01/2024 04:17

** Shares of Indian paint maker Asian Paints  ASPN.NS  down
0.5% to 3,282.05 rupees ahead of Q3 results
    ** Benchmark Nifty 50 index  .NSEI , which ASPN is a part
of, sheds 1.2%
    ** Analysts, on avg, expect ASPN's profit to rise ~31% and
rev to grow ~8%, per LSEG, vs 54% rise in Q2 profit and 0.3% rev
growth
    ** Contrary to expectations of a recovery during the
festival and marriage seasons, demand for paints remained weak
in Q3 - Elara Capital
    ** Gross margins to expand 50 bps QoQ and sharply YoY in Q3
on softer raw material costs, driving 40% EBITDA growth  -
Jefferies
    ** ASPN first to report Q3 results among major Indian paint
companies 
    ** Analysts' avg rating on ASPN, peers Kansai Nerolac
 KANE.NS  and Indigo Paints  INDG.NS  at "hold"; Berger Paints
 BRGR.NS  only sell-rated stock among major paint companies
    ** ASPN's 10% rise in 2023 lowest among Indian paint stocks;
BRGR's ~25% climb the highest
    

 (Reporting by Kashish Tandon in Bengaluru)
 ((kashish.tandon@thomsonreuters.com))