Margins drive 3Q beat; raise estimates marginally

Company
18 Jan 2024
5 Min read 
  • Asian Paints reported a volume growth of 12% YoY in 3QFY24, driven by both rural and urban markets.
  •  The company achieved a gross margin of 43.6%, the best in the last 11 quarters.
  •  EBITDA surged 28% YoY during the quarter, beating expectations.
  •  The company plans to reach a capex of INR 20 billion by the end of FY24.
  •  Valuations are considered expensive at ~53xFY25E EPS and 48xFY26E EPS.
  •  The company reiterates a Neutral rating with a target price of INR 3,340.
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