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2025-07-15 10:00:26 am | Source: Motilal Oswal Financial Services Ltd
Neutral Asian Paints Ltd For Target Rs. 2,500 by Motilal Oswal Financial Services Ltd
Neutral Asian Paints Ltd For Target Rs. 2,500 by Motilal Oswal Financial Services Ltd

* We model 1% revenue growth in 1Q, as no meaningful improvement has been observed in the demand environment, particularly in urban markets.

* We expect GP margin expansion of 130bp YoY to 43.8% due to deflation in RM prices. EBITDA margin is expected to contract 40bp YoY to 18.5% due to negative operating leverage and high operating costs.

* Volume growth is expected to be 7% in domestic decorative paints. The gap in volume and value growth is due to downtrading.

* We expect this volume-value gap to narrow going forward as demand improves. The price hike taken by company in FY25 also helps in realization growth.

 

 

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