Asian Paints shares hit 52-week high for second day, overbought on charts; price targets, outlook & more 

Shares of Asian Paints Ltd, the country's largest paint manufacturing company, hit their fresh 52 week high for the second straight session on the back of stellar Q2 earnings. Asian Paints stock rose 4.49% to a fresh 52 week high of Rs 2,898.20 today. Market cap of the firm stood at Rs 2.74 lakh crore. The shares are trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages. 

In a year, the stock has gained 16 per cent and gained 24% in 2025. 

Total 2.67 lakh shares of the firm changed hands amounting to a turnover of Rs 76.65 crore. The stock is oversold on charts with a Relative Strength Index (RSI) of 80.8. 

Nuvama is bullish on the outlook of the stock. 

The brokerage expects further improvement in demand trends, particularly in urban markets. "We are raising FY26E/27E/28E EPS by 3%/3%/4%, yielding a TP of Rs 3,390 (earlier Rs 2,935) at 50x FY28E PE (trading at 74x/57x/47x FY25A/26E/27E). We retain strong anti-consensus ‘BUY’," said Nuvama in its Q2 earnings review. 

Motilal Oswal expects an upside of 8% on the paints stock. It has price targte of Rs 3,000 on the firm. 

The brokerage increased its EPS estimates by 5% for FY26 and FY27, given the improving demand in 2QFY26 and expanding margins. 

"APNT remains focused on innovation, brand salience, regionalization, and execution excellence to drive consistent growth. While competitive intensity remains elevated, the demand environment is stabilizing, and with the peak of disruption behind, APNT appears well-positioned to sustain steady growth and defend its market leadership. With expectations of better earnings, we raise our target valuation multiple to 50x (10-year average P/E) on Sep’27E EPS to derive TP of Rs 3,000. We reiterate our Neutral rating," said the brokerage. 

Jefferies has raised its price target to Rs 3300 with a buy call. 

"Domestic volume growth of D/D along with share gains were key highlights from 2Q, led by investments in brands, innovation, and regional activations. Interestingly, this was coupled with smart margin expansion (cost efficiencies, benign inputs). Competition remains intense, but paints is a business of LT relationships," said Jefferies.

HSBC raised its price target on Asian Paints to Rs 3,050. "QFY25 saw market share gains with broad-based volume growth of 10.9% and revenue growth of 6%. 

Core retail decorative business recovery led to a margin surprise, which should continue. FY27 estimated EPS is 10% above consensus, said HSBC. 

However, CITI has a sell rating on the paints stock. It has price target of Rs 2250. It said CITI on Asian Paints. The brokerage said good growth and margin albeit was on a weak base, according to the management. 

Goldman Sachs has also given a sell call on the stock with a price target of Rs 2500.  It said strong performance but sustaining growth in H2 will be a challenge. Management maintained guidance of mid-single digit revenue growth in FY26. Gross margin improvement likely to sustain as input costs have moderated, however EBITDA margins likely to remain in the range of 18-20% as competitive intensity remains high

The paints major reported a 47 per cent year-on-year (YoY) rise in its consolidated net profit for the September 2025 quarter. During the quarter under review, profit came at Rs 1018 crore from Rs 693.66 crore in the corresponding period last year.

The company said its revenue rose 6.4% to Rs 8531 crore in Q2FY26 from Rs 8027.5 crore in the year-ago period. EBITDA climbed 21.3% to Rs 1503 crore in Q2 against Rs 1239.5 in the year ago period. 

Asian Paints delivered a strong Q2 FY26, marked by a 10.9% domestic decorative volume growth exceeding guidance and a 220 bps consolidated PBDIT margin expansion. 

The board of the firm also approved a payment of interim dividend of Rs 4.50 (Rupees four and paise fifty only) per equity share of the face value of Re. 1 (Rupee one) each for the financial year ending 31 st March 2026. The record date for interim dividend has been fixed as Tuesday, 18th November 2025, and the dividend will be paid to the shareholders on or after Thursday, November 27, 2025.