Asian Paints Ltd - Initiating Coverage - BUY - Destimoney Research

- Started in 1945, Asian Paints is India's leading paint company with 46% market share in a Rs.187 bn organized paint industry.

- With a diverse product portfolio, available at across price points, Asian Paint has grown at 22.8% CAGR over the last six years, more than the industry growth rate of 14.6% during the same period.

- The company is in the forefront in introducing innovate products and services that has complimented its marketing strategies and enhanced consumer experience. The company has a strong distribution network with around 27,000 dealers and has presence in both metros as well as the rapidly growing Tier2 and Tier 3 cities.

- The company is also increasing its presence in the industrial segment through its JV (APPG) with PPG Industries, which is the second largest automotive coatings supplier in the country.

- The international business, which faced macro headwinds recently, is expected to contribute positively to profitable growth of the company in coming years.

- We believe leadership position in the industry, continued economic growth and high demand for repainting bodes well for Asian Paints. Hence, we initiate coverage on Asian Paints with 'BUY' rating and a target price of Rs.4,095 per share.

Source : Equity Bulls

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