Sell Asian Paints Ltd - Emkay

Reco: SELL
CMP: Rs 3619
Target Price: Rs 3340

Volume Shocker... Downgrade to SELL

- Shocker in volume growth; Asian Paints doles out 2% volume decline in domestic decorative paint business in Q1FY13

- Do not ascribe to management theory of adverse base or inventory pile-up as reason for deceleration in volume growth. We believe that, demand slowdown is sole reason

- Consolidated performance on weak side; reports revenues and APAT of Rs25.5 bn and Rs2.9 bn against expectation of Rs28.1 bn and Rs3.0 bn

- Expect moderation in category volume growth alongside challenges to sustenance of Ebidta margins. We downgrade the rating to SELL with price target of Rs3340/Share.

Source : Equity Bulls

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