- Net income for Asian Paints in the first quarter is 11.7 billion rupees, which is a 25% decrease year-over-year, missing the estimated 13.99 billion rupees.
- Revenue stands at 89.7 billion rupees, down by 2.3% year-over-year, and below the estimated 92.7 billion rupees.
- Total costs reached 75.6 billion rupees, reflecting a 3.4% increase year-over-year, higher than the estimated 73.4 billion rupees.
- Raw material costs slightly increased by 0.2% year-over-year to 40.8 billion rupees.
- Other income declined by 21% year-over-year, amounting to 1.56 billion rupees.
- Profit before depreciation, interest, tax, and other income is 16.9 billion rupees, showing a 20% decrease year-over-year and falling short of the estimated 19.65 billion rupees.
- Analyst recommendations for Asian Paints are spread across 11 buys, 11 holds, and 16 sells.
Asian Paints on Smartkarma
Analyst coverage on Asian Paints on Smartkarma suggests a bullish sentiment towards the company. Pranav Bhavsar‘s research on the competitive intensity in the paint industry indicates that current signals favor Asian Paints over Akzo Nobel India. Despite Opus influence on dealers and painters, consumers seem to prefer Asian Paints, highlighting the company’s strong position in the market. This insight provides valuable perspective on the industry dynamics and Asian Paints‘ competitive edge.
In another report by Pranav Bhavsar, the sentiment remains positive towards Asian Paints. Interactions with paint dealers across different regions reveal excitement and uncertainty surrounding Grasim’s Paint Foray and its impact on the sector. While acknowledging the credible threat posed by Grasim Industries, it is suggested that it might be premature to discount Asian Paints‘ leadership in the market. This analysis underscores the continued confidence in Asian Paints‘ position despite emerging competition.
A look at Asian Paints Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Asian Paints Limited shows a promising long-term outlook. With a high Dividend score of 5, the company is known for its consistent and generous dividend payouts, making it an attractive choice for income-seeking investors. Additionally, Asian Paints scores well on Resilience with a score of 4, indicating its ability to weather economic uncertainties and market fluctuations.
While the Value score is moderate at 2 and Growth and Momentum scores standing at 3 each, the overall outlook for Asian Paints appears positive. The company’s diverse product portfolio, including decorative paints and industrial chemicals, positions it well for sustained growth and market stability. Investors may view Asian Paints as a reliable investment option with a solid track record of dividends and a resilient business model.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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