InvestorQ : What is your view on the stock of Asian Paints after the results announced for Jun-21 quarter?
Mitali Bhutta made post

What is your view on the stock of Asian Paints after the results announced for Jun-21 quarter?

Answer
image
2 days ago
Follow

It looked like the stock market on Tuesday was impressed by the results of Asian Paints as the stock rallied by 7% even as the market cap of Asian Paints scaled the Rs.3 trillion mark. For the Jun-21 quarter, Asian Paints reported 162% yoy growth in net profits Rs.574 crore on the strength of strong operating performance in the decorative paints segment and greater focus on home solutions market, which is growing much faster.

Revenues were up 91% at Rs.5,585 crore in the Jun-21 quarter, although you can attribute this sharp growth that to a favourably low base in Jun-20. Decorative paint volumes more than doubled on revenge spending but strong volumes were also visible in the revenues from industrial paints and home improvement. Input cost spiked by 13-15% sequentially of which only 3% could be passed on as price hikes, impacting gross margins by about 500 bps.

2 Views