Asian Paints is likely to post a mixed bag performance during the quarter ending December. The paint demand as per analysts though was satisfactory during festival month of November, nevertheless lost steam thereafter. The monsoon pattern remined erratic and was not supportive for huge pick up in demand during the quarter.
The industrial and projects demand nevertheless is likely to support the growth for paint manufacturers as Asian Paints.. Volume growth expectations thereby remain muted. While ICICI securities expects mid-single digit volume growth, some others expect it in high single digits or low double digits for paint companies like Asian Paints.
Also Read- LIC overtakes SBI to become the most valuable PSU: mcap touches 5.8 lakh Crore ICICI Securities expects paint companies reporting mid-single-digit volume growth in Q3FY24. The offtake was better around Diwali period, but it failed to sustain momentum thereafter, they said. Asian Paints had implemented a price cut of 1% on November 15, 2023 for most decorative segments, nevertheless dealer checks of the brokerage suggest that the move did not cheer up the customers substantially.
B2B revenue growth (project business) is likely to have remained strong in Q3FY24 YoY said analysts at ICICI Securities. Dealers expect better demand in Q4FY24, particularly in Feb-Mar’24. Analysts at Kotak Institutional equities estimate 6% year on year growth in standalone revenues (largely domestic decorative paints) for Asian Paints during Q3.
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