Asian Paints: This year the festival of Diwali will be celebrated on 31 October. On this festival of lights, painting and cleaning of houses is done all over the country. But, paint manufacturing companies have already started shocking people. There have been reports of continuous increase in the prices of paint from the leading paint companies. The leading companies of this sector, Asian Paints and Berger Paints, have started increasing the prices. Asian Paints has already increased the prices of paint twice in the month of July itself. Due to this decision, people are already facing the brunt of inflation and the cost of painting houses, shops, houses, institutions before Diwali has increased.
Asian Paints prices increased twice in July-Berger Paints also became expensive
Asian Paints had earlier announced a price hike on July 10. The company had increased the rates of its paints by 0.5 to 1 percent and these increased prices have come into effect from July 22. After this, once again this week, the company has increased the prices by 1 to 1.25 percent. The company has increased the prices twice in a month and along with this, Berger Paints has also increased the prices of its products. Berger Paints has also increased the paint rates by 0.7 percent to 1 percent from July 22. While Asian Paints officially informed the stock exchange about this, Berger Paints has confirmed this information to an economic news channel.
Asian Paints stock continues to rise
These decisions of India’s largest paint company will hit the customers but after the price hike, the company’s stock has started rising. Today, Friday, Asian Paints’ stock closed at Rs 2948.35 per share, up by Rs 46.95 or 1.62 percent. The company’s stock has been rising continuously for several days.
Asian Paints reports weak quarterly results
India’s largest paint company said that its revenue fell by 2.3 percent to Rs 8943 crore in the April to June quarter. This figure was Rs 9154 crore in the same period a year ago. Asian Paints’ first quarter profit was also weaker than market estimates and has been affected due to challenging demand environment. In the June quarter, Asian Paints’ consolidated net profit fell by 24.6 percent to Rs 1170 crore, which was Rs 1383 crore in the same quarter last year.
Asian Paints- Nuwama can go up to Rs 3450
Even after the quarterly results of Asian Paints, Nuvama Institutional Equities maintained its BUY rating on Asian Paints. It said that the first quarter was weak due to heat and elections, but a slight decline in the stock of Asian Paints should be considered a buying opportunity. The stock is expected to rise due to improvement in rural consumption and further price increase. Nuvama Institutional has maintained BUY rating for Asian Paints with a target price of Rs 3450.
Asian Paints claims- only a little burden was put on the customer
Asian Paints MD and CEO Amit Singla recently told CNBC TV18 that the company has decided to bear most of the increased cost and pass on only a small part of it to the customers. Anyway, the company has increased the prices of paints after 12-18 months. He said that in the last quarter, due to severe heat and Lok Sabha elections, construction work remained slow, due to which the demand in the paint industry remained weak. However, we hope that due to the improving trend in rural areas and the increase in monsoon, the demand will improve and this situation will change soon.
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