Asian Paints may move to Rs 1,471
Asian Paints is India’s leading paint company and Asia’s third largest paint company, with a group turnover of Rs 169 billion. Asian Paints operates in 16 countries and has 25 paint manufacturing facilities in the world servicing consumers in over 65 countries.
Asian Paints being one of the market leaders offering its innovative products through its vast distribution network is best poised to gain maximum leverage amongst peers.
The company operates primarily into three segments namely Decorative paints, International Paints, Industrial paints & coatings and Home and Improvement.
The Indian paints industry is expected to grow at around 8%-12% in next few years and demand factors remain strong in terms of growth.Stable operating margins around 18% to 20% in past few years.
During the quarter the company has effected a price hike of around 1.9% and the cumulative price hike for the year stood at around 3.3%. The management has also indicated to conduct further price hike as needed due to increase in raw material costs owing to crude oil.