The Asian Paints share price is on a high after its second-quarter earnings. The stock price jumped 4.6% to an intra-day high and is among the top gainers on the Nifty. The international brokerage Jefferies put this as ‘The King is Back’.
Jefferies on Asian Paints: ‘The King is back’
Jefferies increased the target price on Asian Paints significantly to Rs 3,300 from Rs 2,900, while maintaining its ‘Buy’ rating. The new target price implies an upside of 24% from current levels. The upgrade came post the quarterly results, and in its report, Jefferies calls Asian Paints the ‘King is back’.
The company’s overall demand was subdued in Q2 due to monsoons (Vs industry growth of 3.5-4% in H1), but Sep-Oct saw a good revival. Going forward, demand is expected to improve on the back of a festive and wedding season and a consumption boost due to new GST rates.
“Guidance of 18-20% EBITDA margin stays as key input prices are likely to remain stable. The management expects MSD value growth for FY26 and the volume-value gap to remain 4-5%,” said Jefferies.
Motilal Oswal on Asian Paints: Neutral
That said, Motilal Oswal does not share the exact amount of exuberance about Asian Paints, though they do believe the worst is over for the Paints major. They have a Neutral rating on the stock, but have raised the target price of Rs 3,000 per share. This indicates room for about 8% from current levels.
According to the leading domestic brokerage house, “Asian Paints remains focused on innovation, brand salience, regionalisation, and execution excellence to drive consistent growth.”
While competitive intensity remains elevated, they believe “the demand environment is stabilising, and with the peak of disruption behind, Asian Paints appears well-positioned to sustain steady growth and defend its market leadership.”
They have increased the EPS estimates by 5% for FY26 and FY27, given the improving demand in Q2FY26 and expanding margins.
Asian Paints Q2 FY26 results
Asian Paints Q2FY26 net profit jumped 43% YoY to Rs 994 crore on the back of robust performance in the decorative, automotive, and industrial paints business.
Asian Paints’ revenue from operations came in at Rs 8,531 crore for the quarter, up 6.3% YoY. The company’s consolidated net sales rose 6.4% YoY. Its decorative business (India) reported a volume growth of 10.9% YoY.
Also, the company declared an interim dividend of Rs 4.5 per equity share.
Asian Paints stock performance
The share price of Asian Paints has risen 9.8% in the last five trading sessions. The stock has given a return of 22% in the past one month and 23% in the previous six months. Asian Paints’ stock price has increased 15.66% in the last one year.