Tue Nov 12 08:24:56 UTC 2024: ## Asian Paints Share Price Drops After Disappointing Q2 Results
**Mumbai, November 12, 2024:** Asian Paints shares tumbled for the second consecutive day on Monday, falling nearly 2% in intraday trading following the company’s disappointing second-quarter results. The shares were trading at around ₹2,507 at 9:55 AM, down 1.41% on the National Stock Exchange (NSE). The stock hit a day high of ₹2,535.00 and a low of ₹2,491.65.
Mixed opinions from brokerage firms have further added to investor uncertainty. While some experts believe the stock’s long-term outlook remains positive despite the poor quarter, others are urging caution.
Gaurang Shah, a market expert, maintains a positive stance on Asian Paints, stating that a single quarter’s weak performance shouldn’t undermine the long-term view of the company. While recovery might take some time, he anticipates future growth.
However, Anuj Singhal, Managing Editor of CNBC-Awaaz, believes the stock’s recent performance aligns with a common pattern for institutional stocks. “These stocks often overshoot target prices in periods of strong performance and undershoot during underperformance,” he explained. While Singhal does not anticipate a rapid drop to ₹2,100, he advises against buying the stock at this time.
The company itself cautioned against expecting an immediate turnaround, highlighting the need for improved earnings to justify the current valuation.
Brokerage houses are also cautious. Nomura maintained a ‘Neutral’ rating for Asian Paints with a target price of ₹2,500, predicting single-digit volume growth for FY25. Morgan Stanley downgraded the stock to ‘Equal-Weight’ and lowered its target price to ₹2,358, citing the management’s conservative outlook on near-term demand.
Investors are advised to consult certified experts before making any investment decisions.
First Piper 