Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

Q4FY21 Result Update - Asian Paints - ICICI Direct

Posted On: 2021-05-16 06:38:14 (Time Zone: UTC)

Asian Paints continued its growth momentum with 48% volume growth in Q4FY21 (11%, 33% YoY volume growth in Q2, Q3 respectively). This resulted in annual volume growth of 13% YoY for the company making up the 38% volume loss that occurred in Q1 due to lockdown. Better than expected volume growth (I-direct estimate was: 28%YoY) in Q4FY21 came in on the back of strong paint demand in Metros and Tier 1 cities. Additionally, new product launches in the waterproofing segment also helped drive volume growth. On the margin front, while no price hike in Q4 weighed on gross margins (down ~266 bps YoY), savings in employee & other costs to the tune of 100 bps and 290 bps YoY, respectively, led to ~127 bps YoY increase in EBITDA margin. PAT came in higher by 81% YoY to Rs. 864 crore. The key takeaways of the conference call: 1) Strong sales in April 2021 before the lockdown was imposed in various states, 2) new launches in the lower end products categories along with back up of strong supply chain helped it to gain market share from regional/organised players, 3) continued focus on educating painter community on increasing undercoat products, 4) focus on protecting market share but not at the cost of margin, 5) well positioned to capture the recovery cycle once the economy opens up, 6) price hike of 2.8% effective from May 2021. We revise our revenue, PAT estimate downside for FY22E by 1.2%, 8%, respectively, factoring in the impact of lockdown and higher input costs.

Valuation & Outlook

We continue to believe in the inherent strength of Asian Paints considering its 80 years old business legacy, strong balance sheet and its supply chain networks. This has not only helped the company to come out strongly from the lockdown disruptions but also register market share gains. We upgrade our recommendation from HOLD to BUY with a revised target price of Rs. 2970/share (earlier Rs. 3010).

For details, click on the link below: Link to the report

Shares of ASIAN PAINTS LTD. was last trading in BSE at Rs.2773.6 as compared to the previous close of Rs. 2556.1. The total number of shares traded during the day was 503178 in over 36531 trades.

The stock hit an intraday high of Rs. 2839 and intraday low of 2600. The net turnover during the day was Rs. 1393863364.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

CESC Q4FY21 Results Review Report - Loss decline, strong CF make valuation attractive - HDFC Securities

White Goods & Durables - Analysis of pressure cooker market: TTK Prestige is key beneficiary - ICICI Securities

CESC - Good earnings in a challenging environment - ICICI Securities

Somany Ceramics - Walking the talk - ICICI Securities

DB Corp - Rise in newsprint price adds to risk - ICICI Securities

CEAT - Market share ambitions remain strong - ICICI Securities

Consumer Staples & Discretionary - Worm's world view #32: Conversations with paint dealers regarding price hikes - ICICI Securities

Oil & Gas - Oil, gas & spot LNG surge to bring gains for GAIL & OIL - ICICI Securities

Asset Management Companies - Positive trends to support earnings - ICICI Securities

Q4FY21 Result Update - Lemon Tree Hotels - ICICI Direct

Q4FY21 Company Update - Globus Spirits - ICICI Direct

Q4FY21 Result Update - DB Corp - ICICI Direct

Q4FY21 Result Update - Somany Ceramics - ICICI Direct

KEC International: Company Update - Building on diversification - HDFC Securities

LIC Housing Finance - Q4 FY21 Result Update - YES Securities

Entertainment Network Ltd - Beating on solutions business - ICICI Securities

Asahi India Glass - Operating leverage, product mix aid margins - ICICI Securities

Whirlpool of India - Market leading revenue growth - ICICI Securities

Lemon Tree Hotels - Wait for recovery gets longer - ICICI Securities

LIC Housing Finance - Stupendous growth momentum; needs to shore up provisioning and capital buffer - ICICI Securities

Quant Pick - Bank of Baroda - ICICI Direct

Company Update - Amara Raja Batteries - Investor Event Outcome - ICICI Direct

Q4FY21 Result Update - Bhel - ICICI Direct

Q4FY21 Company Update - NRB Bearings - ICICI Direct

CESC - Q4FY21 First Cut - ICICI Direct

Q4FY21 Result Update - Entertainment Network India - ICICI Direct

LIC Housing Finance Results Review Report - Balance sheet beefs up; P&L to stay soft - HDFC Securities

Jubilant FoodWorks 4QFY21 Results Review Report - Missing excitement; recovery priced in - HDFC Securities

BFSI Sector Update - MFI Consultation Paper Takeaways - Incrementally positive for NBFC-MFIs - HDFC Securities

Q4FY21 Result Update - JK Cement - ICICI Direct

Q4FY21 Result Update - Minda Industries - ICICI Direct

Stock Tales - Indo Count Industries - ICICI Direct

IPO Review - Krishna Institute of Medical Sciences Ltd - ICICI Direct

Q4FY21 Company Update - Greenply Industries - ICICI Direct

IPO Review - Dodla Dairy Ltd - ICICI Direct

Lemon Tree Hotels - Q4FY21 First Cut - ICICI Direct

Jubilant Foodworks - Q4FY21 investor call takeaways - YES Securities

Greenply Industries Ltd - Q4 FY21 Result Update - YES Securities

Whirlpool of India Ltd - Q4 FY21 Result Update - YES Securities

New India Assurance Report - CoRs disappoint yet again - HDFC Securities

Maintain BUY on Kajaria Ceramics - Performance shines through; outlook bright - HDFC Securities

Retain ADD on Deccan Cement - Volume strong; high other expense dents margin - HDFC Securities

Reiterate ADD on NHPC - Lower generation impacts earnings - HDFC Securities

Maintain BUY on JK Cement - Robust volume and utilisation - HDFC Securities

Maintain BUY on DLF - Gaining traction - HDFC Securities

Maintain BUY on Capacite Infraprojects - Marginal miss - HDFC Securities

DLF Ltd - Q4 FY21 Result Update - YES Securities

Greenply Industries Ltd - Q4FY21 first cut - YES Securities

Coal India - Coal makes a comeback - ICICI Securities

Kajaria Ceramics - Q4FY21 beat largely priced in - ICICI Securities

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020