Asian Paints share price has been under sell off pressure since early morning deal even though the paint major reported positive Q3 results on Thursday. According to stock market experts, the chemical major has reported positive results but these results are below expectations of the Dalal Street. Experts said that market was expecting better quarterly numbers from Asian Paints as raw materials including crude oil prices had gone down during the latest quarter.
Stock market experts went on to add that the stock may further go down and come around ₹2,700 apiece levels. However, this would be a good buying zone for bottom finishers as recent depreciation in the crude oil prices and other raw materials may reflect in upcoming quarters. So, those who have this stock in their portfolio are advised to further accumulate around ₹2,700 whereas fresh buyers can also add Asian Paints shares in its portfolio for short to medium term target of ₹3,000 to ₹3,200 apiece levels.
Speaking on the reasons that led to correction in Asian Paints share price today, Saurabh Jain, Vice President — Research at SMC Global Securities said, “Asian Paints has reported flat Q3 numbers as the market was expecting better quarterly numbers from the paint major after the softening of raw material prices, especially the crude oil price. However, the company managed to report positive but flat Q3FY23 results that failed to impress Dalal Street bulls.”
Expecting bounce back in Asian Paints shares, Ravi Singhal, CEO at GCL Broking said, “Soft raw material prices are expected to continue for few more months and hence this may reflect in next quarterly numbers of the company. So, we are expected bounce back in Asian Paints shares at around ₹2700 apiece levels and suggest Asian Paints shareholders to further accumulate this paint stock as ₹2,700 is a good buying zone. Those who have short to medium term time horizon can also add Asian Paints shares in their portfolio at ₹2,700 levels maintaining stop loss at ₹2,620 per share levels.”
In Q3FY23 results, Asian Paints reported ₹1,097 crore consolidated net profit, which is around 6 per cent higher from its Q3FY22 consolidated net profit of ₹1,031 crore. This Q3 results reported on Thursday by the Indian paint major was below the market estimates as muted or tepid demand pared the benefits Asian Paints incurred after depreciation in raw material prices, which includes crude oil prices as well.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.