Asian Paints Shares Tumble 5% After Disappointing Q3 Earnings Report

Asian Paints Ltd witnessed a sharp decline in its share price on February 5, 2025, falling 5% to an intraday low of ₹2,235 after the company reported underwhelming results for the third quarter of FY25.

The company’s consolidated net profit dropped 23.3% year-on-year to ₹1,110.5 crore, down from ₹1,447.7 crore in the same quarter last year. Revenue also fell by6.1%, totaling ₹8,549.4 crore compared to ₹9,103.1 crore in Q3 FY24.

The earnings report revealed significant challenges faced by the company, including weak demand in urban markets and subdued sales during the festive season.

The overall coatings business in India declined by 6.6%, while the domestic decorative segment saw only 1.6% volume growth but a 7.5% drop in standalone revenues.

The disappointing performance prompted swift reactions from brokerage firms, with many revising their outlooks for Asian Paints.

Several analysts downgraded their target prices and earnings estimates for the company, citing increased competition and a challenging demand environment as key concerns.

The stock has already corrected by 23% over the past three months and is now trading at approximately 41 timesFY27 EPS estimates.

Asian Paints faces mounting pressure as new players enter the market, further intensifying competition in the paint industry. Despite these headwinds, the company remains optimistic about its long-term growth prospects and is expected to focus on recovery strategies in the coming quarters.

Investors are now left deliberating their next steps as Asian Paints navigates through these turbulent times while attempting to maintain its market leadership position.

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