Asian Paints Share Price: Prabhudas Lilladher has released a new research report on Asian Paints, which predicts changes in the company’s upcoming economic outlook. Let us tell you that according to a report, Asian Paints’ EPS (Earnings Per Share) for FY25, FY26, and FY27 has been estimated to decline by 0.4%, 3.6,%, and 4.6% respectively. The main reason for this report is said to be the company’s 24% decline in 9 months and weak economic condition in the medium term. Prabhudas Lilladher believes that the company is under pressure from many fronts, and he estimates that the next few years will be a challenging time for Asian Paints. In this article, we will understand the key points of this report in detail and look at the reasons behind them. So let us now know about this report of the company without wasting any time.
The main reasons for the pressure on the company
According to Prabhudas Lilladher, Asian Paints is facing pressure due to several major reasons. First, urban demand has slowed down due to high inflation, which has affected paint sales. There has been a downtrading trend in the consumer segment, i.e. people are now mostly moving towards cheap and mid-range products, which is leading to a decline in the premium category. Apart from this, the entry of new competitors like Birla Opus in the decorative paints market has further intensified the competition in the market. As a result, Asian Paints is having difficulty maintaining its market position.
What will be the future for Asian Paints?
Prabhudas Lilladher believes that the market situation may improve after the first and second quarters of 2026. The main reason for this may be the tax cuts recently announced by the central government. However, increased competition and changing consumer preferences will remain a permanent challenge for the company. The times to come will not be as smooth for Asian Paints as they will have to face stronger competition from competitors. The acquisition of Azizo Nobel’s decorative business may be another challenge, which will further increase the pressure in the market.
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Asian Paints Economic Outlook and Valuation
From a financial perspective, Prabhudas Lilladher has projected a CAGR (Compound Annual Growth Rate) of 5.8% and PAT (Profit After Tax) growth of 3.5% for Asian Paints from FY25 to FY27. However, despite this situation, the company’s valuation is still considered expensive, as the company is trading at 50x FY27 EPS. This means that the company’s valuation may remain relatively high despite slower growth in the coming years.
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Conclusion
In conclusion, the report shows that Asian Paints may face many economic and competitive pressures in the coming years. Inflation and competition may reduce Asian Paints’ growth rate, although tax cuts by the government may improve the situation somewhat. Prabhudas Lilladher has set a target price of ₹2123 for Asian Paints, which is lower than the previous ₹2230. The information given in this report makes it clear that Asian Paints’ current situation and the possibility of improvement in the coming time may be limited.
