Pain Cat Asia prices decreased 2 percent at the beginning of trading on Friday after the company came out with the result of December quarterly.

Asian paint on January 20 reported consolidation profit after tax (PAT) from RS 1,016 Crore for the quarter ended December 2021, down 18 percent from RS 1,238 Crore in the first year. However, it was 70 percent growth of RS 596 Crore in the previous quarter.

The company reported a 26 percent increase in consolidated income at RS 8,527 Crore from Rs 6,788 Crore per year back. Revenue in the September quarter is Rs 7,096 Crore.

Consolidated income from the paint business grew 25 percent in the year to RS 8,319 Crore compared to Rs 6,635 Crore in the same quarter last year. In sequence, paint business income grew 21 percent from Rs 6,902 Crore.

This is what the broker said about stock and company after December quarter income:

Nomura.

Nomura’s foreign research house has maintained a ‘buy’ call and raised the target to Rs 3,875 from Hospital 3,550 because it expects a strong demand to continue and margins get better.

The third quarter is a knock on the volume / value, while the margin skips. The company provides a volume growth / value of Q3 +18 percent / + 26 percent, YoY.

Management does not expect a meaningful impact on volume growth. This growth is driven by higher demand in Metros, Tier-1 and 2 markets and strong sales growth is likely to continue, assisted by sharing shares in the new category / niche.

Nomura estimates the pressure of margins to subside on the back of the price increase. It lowered EPS FY22 by 3 percent to a factor in the Miss Q3 margin.

The broking firm increases EPS FY23 and FY24, respectively by 4 percent, is a factor in strong volume / value growth and an increase in margins.

Credit Suisse.

The research company has called ‘outperformed’ calls on shares and raises the target price to Rs 3,700 from RS 3,500.

This increases FY22-24 income by 3 percent and expects a greater margin recovery in Q4.

Jefferies.

Broking company maintains a ‘poor performance’ rating on shares with a target at the RS 2,700 behind the impressive Q3 with a volume growth of 18 percent in the Indian decorative business.

The base does not have consequences here because of 2 years and 3 years CAGR is even higher. There has been a strong growth momentum despite the highest product price increase, he added.

Structural stories on paint are strong & the best companies in class.

Prabhudas Lilladher.

We increase our EPS FY22 / FY23 / FY24 amounted to 13.6 percent / 7 percent / 3.2 percent, given (1) strong-hidden demand, (2) a long runway for growth in Raban India, (3) rose again on the metro / Tier1 / 2 requests, and (4) strong traction in the project project.

“We hope the company to maintain premium assessments remembers the visibility of strong growth. We maintain purchases with the target price of Rs 3,762 (RS 3.675 previous). Every correction of structural margins, free entry in our call is a risk.

Oswal Maleral.

Miss on revenue has caused 9.8 percent discount on EPS FY22, but there has been no material change in our EPS FY23 and FY24 estimates.

While sales growth impressive at 3QFY22, even on a fairly high basis from the previous year, it still has to be seen how the company will tariffs at the front of the request in the next quarter – especially because (a) driver’s festive demand will no longer be played and (b ) The basis of sales growth is even more challenging forward.

Expensive valuation at 66x / 57x EPS FY23E / FY24E. We maintain our neutral rating, with the target price of the RS 3,500 at 60x Mar’24e EPS, which leaves a little room for upside down.

At 9:32 a.m., Asia Paints quoted Rs 3,309.85, up Rs 2.15, or 0.07 percent, at the BSE.