Metcon Finance

We have a BUY call on Asian Paints with a first target of 3145 and second target of 3450. Fundamentally, with the budget approaching, the Government is expected to hand out benefits in the housing sector with state elections this year and union elections next year. With sticky inflation at high levels, even with lesser home buying, home improvements are expected to stay elevated. The stock has witnessed heavy undercutting with results and plans to invest into capacity building that will result in cash outflow. However, the company has seen higher margin %s and we see a strong uptick in revenues & margin going forward.

Disclaimer: We and/or our representatives may have positions in the mentioned stock. This shall not be construed as an offer to buy or sell this stock and any loss or damage shall not to be attributable to us. Kindly consult your financial advisor before any investment decisions