Asian Paints (APNT IN) – Q3FY26 Result Update – Growth trajectory to remain muted – REDUCE
Published on 27 Jan 2026
We remain cautious on APNT due to. 1) sustained competitive intensity in decorative paints. 2) ~4-5% volume–value gap from an adverse mix (higher growth in Putty, Construction Chemicals and Waterproofing), limiting sales growth to mid-single-digit; and 3) sustained softness in Bath, Kitchen and Home Décor business. We estimate revenue/EPS CAGR of 5.4%/8.0% over FY26–28. Valuing the stock at 48xDec’27E EPS, we revise our TP to Rs2,464 (Rs2,448 based on 48xSept27 EPS earlier). APNT trades at 50.2x FY28 EPS, leaving little scope for a re-rating. Retain Reduce.
