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Asian Paints share trading higher ahead of Q4 earnings, here's what to expect

Share of Asian Paints rose 0.82%  to Rs 2,577 against previous close of Rs 2,556 on BSE

twitter-logoBusinessToday.In | May 12, 2021 | Updated 11:08 IST
Asian Paints share trading higher ahead of Q4 earnings
Asian Paints stock opened at Rs 2,577 and hit an intra day low of Rs 2,548 today.

Asian Paints share was trading higher ahead of the firm's Q4 earnings set to be announced today. Share of Asian Paints rose 0.82%  to Rs 2,577 against previous close of Rs 2,556 on BSE. The stock has gained 68.43% in one year but fallen 7.2% since the beginning of this year.

Market cap of the firm rose to Rs 2.46 lakh crore on BSE. The large cap stock opened at Rs 2,577 and hit an intra day low of Rs 2,548 today. Total 0.14 lakh shares of the firm changed hands amounting to turnover of Rs  3.50 crore on BSE.

The share hit its 52-week high of Rs 2,871 on January 11, 2021 and 52-week low of Rs 1,482 on May 19, 2020.

The stock trades higher than 5 day, 50 day, 100 day and 200 day moving averages but lower than 20 day moving averages.

Kotak Institutional Equities expects Asian Paints to report a 73 percent YoY rise in Q4 profit. Revenue is seen rising 36 percent for the quarter ended March.

"We expect strong 43 percent and 37 percent YoY growth in volumes and value, in domestic decorative paints aided by revival in tier-1/metro markets and continued good demand in tier-3/4 cities," said Kotak Institutional Equities.

KR Choksey projects sales to rise by 43 percent on YoY basis due to pent-up demand arising during the quarter.

"Volume surge attributed to rural economy picking up. International revenues (around 12-13 percent of revenue) will be subdued due to global supply disruption and lesser demand in foreign countries," said the brokerage.

"EBITDA margins are expected to expand by 408 bps YoY, however, increase in Brent crude prices may impact the margins partially. PAT margin is also expected to expand by around 330 bps YoY," said KR Choksey.

In third quarter of last fiscal, Asian Paints reported a 62.28 per cent rise in its consolidated profit to Rs 1,265.35 crore against profit of Rs 779.71 crore during the same period of previous fiscal.

Profit before tax (PBT) rose 60.5 per cent to Rs 1,696.76 crore in the third quarter from Rs 1,057.28 crore in the year-ago period, the paints maker said.

Revenue from operations in Q3 stood at Rs 6,886.39 crore, up 25.43 per cent, against Rs 5,490.11 crore reported in the same period of 2019-20 fiscal.

Meanwhile, Sensex and Nifty were trading lower for the second consecutive session. While Sensex fell 316 points to 48,833, Nifty lost 90 points to 14,760.

Stocks in news: RIL, JM Financial, Godrej Consumer, Asian Paints and more

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