Neutral Asian Paints Ltd For Target Rs. 2,500 by Motilal Oswal Financial Services Ltd

* We model 1% revenue growth in 2Q as there is no meaningful improvement seen in the demand environment particularly in the urban markets. Extended rainfall has further impacted decorative paints segment.
* APNT aims to achieve single-digit volume and value growth in FY26E.
* Volume growth expected to be 5% in domestic decorative paints. The gap in volume and value growth is due to downtrading.
* We expect GP margin expansion of 170bp YoY to 42.5% on deflation in RM prices. EBITDA margin expected to improve 120bp YoY to 16.7% given higher operating costs.
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