Tue Nov 12 12:34:46 UTC 2024: ## Asian Paints Shares Sink to 52-Week Low Amid Weak Earnings and Heightened Competition
**Mumbai, November 6, 2024** – Asian Paints shares plummeted to their lowest point in a year for the second consecutive day on Tuesday, falling 1.95% to Rs 2,493.05 on the BSE. The decline follows disappointing Q2 earnings that have sparked concerns about the company’s future outlook.
This marks the first time in over three and a half years that the stock has traded below Rs 2,500. The stock’s recent dip, coupled with a declining relative strength index (RSI) of 14.7, suggests that Asian Paints is currently trading in the oversold zone.
The company’s Q2 performance, which saw a 42.4% YoY decline in net profit to Rs 694.6 crore, has triggered a wave of bearish sentiment among brokerages. Several major firms have downgraded their ratings and price targets for Asian Paints, citing concerns over intensifying competition and declining domestic decorative paint volumes.
Global brokerage Jefferies maintained its “underperform” rating with a price target of Rs 2,100, expressing concerns about the company’s future prospects. JPMorgan downgraded the stock to “underweight” from “neutral” and lowered its price target to Rs 2,400, citing a decade-long decline in domestic paint volumes.
Prabhudas Lilladher also retained its “reduce” call on the stock, trimming its price target to Rs 2230. They attributed the decline to a loss of market share as competitors have grown volumes by 3-4% while Asian Paints experienced a 0.5% decrease.
While the company announced an interim dividend of Rs 4.25 for FY25, the stock’s current performance suggests that investors remain wary of the company’s ability to navigate the increasingly competitive market landscape.
First Piper 