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TECHNICAL OUTLOOK

Asian Paint is among the best performer within the paint space, maintaining a steady long uptrend since 2009.

It has been witnessing consolidation in a broader consolidation i.e. 2550-3570 for over two years, forming higher lows on the weekly timeframe.

It is inching gradually towards the upper band of the range and likely to surpass the same in its third attempt

FORWARD PE BAND (x)

TECHNICAL CHART : WEEKLY

INVESTMENT RATIONAL

Asian Paints is India’s leading paint and Decor Company which is ranked among the top 8 coatings companies in the world. It has 27 paint manufacturing facilities and serves consumers in over 60+ countries. We believe industry tailwinds such as government spending towards infra structure & housing and demand from real-estate along with robust festive demand and marriage season will aid growth.

The company’s plan is to innovate products in its large contributing segment i.e. decorative, expand its home décor business as well as focus on highly demanding Automotive and coating segments, focus on increasing premium products in the mix.

Despite the competition from new entrants, Asian paints has been able to maintain its market leadership as well as it enjoys premium valuation led on the back of its product portfolio, strong presence in decorative space and its foray into allied segments as well as healthy distribution reach.