Asian Paints - March 2013 Results Preview - Motilal Oswal

- We expect Asian Paints to post 15.5% revenue growth to INR29.3b in 4QFY13E, led by ~7-8% volume growth.

- Demand buoyancy of 3QFY13, which was led by the festive season, has not spilled over to 4QFY13.

- Expect margin expansion of 150bp (low base) to 16.3%, led by gross margin uptick, post correction in Ti02 prices.

- International business shall continue to report mixed performance, as in the past.

- APNT forayed into the modern kitchen space by acquiring a 51% stake in Sleek Group.

- The stock trades at 33.3x FY14E EPS and 26.5x FY15E EPS. Neutral.

Source : Equity Bulls

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