Asian Paints - 2QFY2013 Result Update - SPA Securities

Asian Paints reported sales in line, while PAT slightly lower than our expectation in Q2FY13. The consolidated sales of INR 26.36bn (up 16.82% YoY) was backed by volume growth of ~7% in domestic decorative market. EBIDTA margin dipped marginally by 9bps YoY to 14.48%.

Company registered PAT at INR 2.39bn, up 14.58%. We expect volume growth and EBIDTA margin in second half to be better than first half due to late onset of festive season demand and declining commodity prices.

However, amid sluggish economic environment and declining trend in volume growth, we retain our target price of INR 3,336 (23x FY14E EPS). We continue to recommend SELL.

Source : Equity Bulls

Keywords