India's Asian Paints could see margins fall in FY25, says Systematix

Systematix Securities

06/06/2024 08:01

** India's Asian Paints  ASPN.NS  likely to see a margin
decline in FY25 on higher ad spends, negative pricing, says
brokerage Systematix 
        ** ASPN down 1.1%, among the 13 Nifty stocks in the red
amidst a broadbased rally 
  
        ** Nifty  .NSEI  up 1% at midday
  
        ** Operating profit margin (OPM) for country's top paint
producer to contract to 20.4% in FY25 - brokerage  
    ** ASPN's annual OPMs expanded in the last three fiscal
years, from 16.5% in FY22 to 21.4% in FY24 
    ** Brokerage sees ASPN hiking promotional expenses by 44%
y/y in FY25, higher than 13.3%-22.2% growth range from the last
three fiscal years 
    ** YTD ASPN down ~14% vs a 4.8% rise in NSEI 

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))