Should you buy, sell or hold Asian Paints after mixed Q1 earnings?

economictimes.indiatimes.com:

Asian Paints on Tuesday reported a 52.5% year-on-year (YoY) rise in consolidated net profit for the quarter ended June to Rs 1,550.37 crore, beating an ET Now poll estimate of Rs 1,407 crore. Consolidated revenue from operations increased nearly 7% YoY to Rs 9,182.31 crore, but was lower than the estimated Rs 9,358 crore.Morgan Stanley: Underweight | Target: Rs 2,702Morgan Stanley remains 'Underweight' on Asian Paints and puts the target price at Rs 2,702. Good growth across segments and market share gains from local players in the economy segment.

Strong margins in 1Q, but no change in guidance for F24, price cuts likely, while management is optimistic on demand outlook, the brokerage said.Kotak: Cautious | Target: Rs 3,050Company’s Q1 print indicates a shift of focus to profitability from topline growth and market share, Kotak said in a note. «We expect a 200-300 bps decline in EBITDA margin and modest earnings growth over FY2024-26E, owing to the rise in competitive intensity. We maintain our cautious stance,» Kotak note said.

It puts the fair value at Rs 3,050.Nuvama: Buy | Target: Rs 3,880Nuvama has recommended a 'Buy' on Asian Paints and raised its target from Rs 3,880 to Rs 4,045. Asian Paints delivered a shining set of Q1FY24 numbers with revenue/EBITDA/PAT rising, beating Nuvama's estimates. «In spite of Grasim’s entry seven months down the line, we remain positive on APL due to high entry barriers and its best-in-class R&D,» the brokerage said.Motilal Oswal: Neutral | Target: Rs 3,120Motilal Oswal reiterated its 'Neutral' rating on the counter with a target price of Rs 3,120 premised on 50XFY25E EPS.