Asian Paints share price slid as much as 5.16 per cent on Monday after the company posted lower-than-expected September quarter results.
Asian Paints share price slid as much as 5.16 per cent on Monday after the company posted lower-than-expected September quarter results. For the quarter ended September 2015, the company posted a consolidated net profit of Rs 399 crore, up 14.89 per cent against Rs 347.30 crore in the corresponding quarter a year ago.
At 12.07 pm, Asian Paints shares were trading 4.49 per cent down at Rs 818.95. The scrip opened at Rs 834 and had touched a high and low of Rs 844.05 and Rs 812.50, respectively, in trade so far.
Later, the scrip closed 4.65 per cent down at Rs 816.95.
According to Religare Capital Market Institutional Research, Asian Paints posted a weak Q2 earnings with 4 per cent, 16.7 per cent and 14.9 per cent YoY growth in consolidated net sales, EBITDA and net profit, even as domestic volume growth came in line at around 8-9 per cent. EBITDA margins too disappointed (15.3 per cent vs. 16 per cent expected) on an adverse product mix.
Total income from operations on consolidated basis was Rs 3,779.36 crore during the quarter under review. It was Rs 3,632.95 crore for the July-September quarter last fiscal.
Religare Capital in a research note said, “While we pare our FY16/FY17/FY18 earnings by 5.8 per cent, 4.8 per cent and 3.7 per cent, respectively, to build in lower revenue growth, we expect demand to recover from H2FY16 onwards. We Maintain ‘Buy’ with a September 2016 target price of Rs 935 (Rs 950 earlier).”