After Q4 earnings, shares of Asian Paints increase by 3%. Do you want to hold, sell, or buy?

In the fourth quarter, the paints giant experienced a 120 basis point increase in its gross margins, but its PBDIT (profit before depreciation, interest, tax, other income, and extraordinary items) decreased by 9% year over year to Rs 1,691 crore. The CLSA sees a reduction in margins together with negative top-line growth. The brokerage firm added that because of the price reductions made in FY24, value growth will probably still trail volume growth. CLSA lowered its target price to Rs 2,337 while keeping its "sell" rating on the company. Asian Paints' top-line growth would be restrained by the new competitors' gain in market share. It anticipates that FY26 EPS will be less than FY24 EPS. Investec kept a target price and a "sell" rating of Rs 2,660 from an earlier Rs 2,755.