Asian Paints Ltd - Channel Checks - Price Hike - Emkay

Reco: BUY
CMP: Rs 4571
Target Price: Rs 5000

- Channel Checks indicate Asian Paints has taken price hike of 1.5%-1.7%in July 2013 largely in solvent-based paints. YTD price hike for FY14E totals to 2.8%

- Trade indicates muted volume growth of 3%- 4% in Q1FY14E vs expectation of 10%; a disappointment given favourable base of Q1FY13 and low intensity in Q4FY13

- Reiterate our core thesis of ability to demonstrate strong pricing power despite low volumes and deliver strong earnings growth. Retain Buy with Price target of Rs5,000.

Source : Equity Bulls

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