Asian Paints' shares dropped more than 9% on November 11 after its Q2FY25 results missed expectations. Brokerages were disappointed by weaker-than-expected performance in a tough market. Challenges like sluggish demand and rising competition contributed to the poor results. Analysts are concerned about the company’s growth prospects in the near term.
Asian Paints' stock dropped over 7% to Rs 2,565 at 9:20 AM, continuing its downward trend for the year with a 25% loss so far. This is a significant underperformance compared to the Nifty 50, which has gained 10% in the same period.
JPMorgan downgraded the stock to "Underweight," lowering its target price from Rs 2,800 to Rs 2,400, citing a substantial operating miss. The company's PBDIT margin fell sharply to 15.5% in Q2FY25 from 20.3% last year, with CEO Amit Syngle attributing the decline to price cuts taken last year, higher material costs, and increased sales expenses.
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