Asian Paint’s stock fell 8.17% to ₹2,543.15 following disappointing Q2 FY25 results. The company reported a 5.3% YoY decline in revenue to ₹8,028 crore and a significant 43.66% drop in net profit to ₹694 crore. Multiple brokerages downgraded the stock, citing weak volumes and competitive pressures.
Share Price Movement
The share price of Asian Paints Limited went down by 8.17 percent to Rs. 2,543.15 per share on Monday, a decline from its previous close of Rs. 2,769.45 per share. The market capitalisation now stands at approximately Rs. 2,43,938 crore as of November 11, 2024.
What Happened
Asian Paints’ stock plunged 8.17% to ₹2,543.15 driven by multiple factors: revenue declined 5.3% YoY to ₹8,028 crore while net profit plummeted 43.66% YoY to ₹694 crore. The company recorded its first decline in domestic paint volumes in a decade (excluding Covid period). A weak competitive position with the company lagging behind peers, coupled with multiple broker downgrades with target prices significantly below current levels, further pressured the stock price.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Asian Paints Limited’s consolidated revenue from operations has decreased by 5.3 percent YOY from Rs. 8,479 crore in Q2 FY24 to Rs. 8,028 crore in Q2 FY25 and declined by 10.50 percent QoQ from Rs. 8,970 crore in Q4 FY24.
The company’s consolidated net profit has reduced by 43.66 percent, from Rs. 1,232 crore in Q2 FY24 to Rs. 694 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has been reduced by 41.53 percent QoQ from Rs. 1,187 crore.
Market Outlook
The home improvement and paints industry is seeing stable demand with a strong shift toward premium products despite inflationary pressures on key raw materials. Urban demand remains resilient as consumers prioritise quality and aesthetics, while rural markets show recovery, aided by favourable monsoons and rising disposable income. The trend toward alternative channels, including e-commerce, is reshaping retail dynamics, prompting companies to innovate digitally. With stable inflation and a boost in rural spending, the industry is positioned for sustained growth.
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Targets
Jefferies maintained an “underperform” rating on Asian Paints with a price target of ₹2,100, citing concerns about competition, which has blurred the company’s future outlook.
JPMorgan downgraded the stock to “underweight” from “neutral” and reduced its target price to ₹2,400 from ₹2,800, pointing to the first decline in domestic decorative paint volumes in a decade (excluding COVID-19) and the company lagging behind peers in both revenue and earnings, with the gap widening in Q2.
Morgan Stanley maintained an “underweight” rating with a target of ₹2,522, highlighting concerns about product mix, rising rebates, employee costs, and higher selling expenses.
Shareholding Pattern
As of the November 2024 shareholding pattern, Asian Paints Limited is primarily held by the promotors at 52.63 percent, foreign institutional investors hold 15.28 percent, and the public with 18.88 percent.
About Company
Asian Paints Ltd, founded in 1942 and based in Mumbai, stands as India’s largest paint company and a global leader in decorative coatings. With a market cap of approximately ₹3.07 trillion, the company dominates the Indian market and operates in over 15 countries, providing products in more than 60 nations. Its comprehensive portfolio spans decorative paints, industrial coatings, waterproofing solutions, and home decor, including modular kitchens, wardrobes, and bath fittings.
Beyond paints, Asian Paints has expanded into the home improvement sector, enhancing its offerings with decorative lighting and other decor solutions. Known for its innovation and sustainability focus, the company recently acquired a stake in White Teak to strengthen its home decor segment. With a commitment to growth and eco-friendly practices, Asian Paints is set to maintain its leadership in both domestic and international markets.
Written By Fazal Ul Vahab C H
Disclaimer
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