Asian Paints Gains 3% in Two Days Post Q1 Results; Brokerages Remain Cautious
Mumbai, July 30, 2025 – Shares of Asian Paints continued their upward trend on Wednesday, rising 1.7% to hit an intra-day high of ₹2,442.7 on the BSE. The stock has gained a cumulative 3% in the two trading sessions following the announcement of its first-quarter earnings.
At approximately 10:45 AM, Asian Paints was trading 1.68% higher at ₹2,442 per share. In contrast, the benchmark Sensex was trading flat at 81,341.45.
Q1 Results Meet Street Estimates
Asian Paints reported first-quarter financial results that were largely in line with market expectations.
Net Profit: The company posted a net profit of ₹1,100 crore, marking a 6% decline from the ₹1,169.98 crore reported in the same quarter last year.
Net Sales: Revenue from operations saw a marginal dip of 0.3% to ₹8,939 crore. The company noted a slight recovery in demand from urban areas, though the onset of the monsoons in June tempered the growth momentum.
Industrial Business: The industrial business segment was a bright spot, with sales growing by 8.4% to ₹736.1 crore, up from ₹679.1 crore year-on-year. This growth was attributed to strong performance in Asian markets, the UAE, and Egypt.
PBIDT: Profit before interest, depreciation, and tax (PBIDT) stood at ₹1,854 crore, a decrease of 1.7% from the previous year.
Analysts’ Views: Caution Amid Competition
Despite the stock’s positive reaction, major brokerages have maintained a cautious outlook, citing intense competition and lingering demand pressures.
Nomura: The brokerage maintained a ‘Neutral’ rating but increased its target price to ₹2,285 from ₹2,200. Nomura noted that while the stock is trading below its historical average, “given the heightened competitive intensity, we still think it is not yet out of the woods.”
Motilal Oswal: Reiterating a ‘Neutral’ rating with a target price of ₹2,500, the firm remains cautious on the company’s growth and margin outlook for FY26. Analysts pointed out the stock’s modest 4% year-to-date performance, attributing it to persistent demand and competitive headwinds.
ICICI Securities: The brokerage maintained an ‘Add’ rating with a target price of ₹2,700. They highlighted Asian Paints’ unique position as the only player with backward integration, which could allow it to either protect margins or gain market share. The firm also noted increased investments in its premium Nilaya brand.
