Asian Paints Stock CRASHES 9% To 3-Year Low: Brokerages Raise Concerns Q2 Results

Asian Paints' share price plunged nine percent on Monday morning, hitting a three-year low.

The stock's steep decline comes after disappointing second quarter results. The company's sales slumped due to weak consumer demand, extensive rainfall and floods, impact of previous year's price cuts, and rising input costs.

Following this underwhelming performance, major brokerages have downgraded the stock.

Nomura has assigned a 'Neutral' rating with a target price of 2,500 rupees per share.

JP Morgan has downgraded Asian Paints to 'Underweight' with a target price of 2,400 rupees.

And CLSA has drastically cut its target price to 2,290 rupees with an 'Underperform' rating.

Adding to the concerns is the changing competitive landscape in the paints segment, particularly with the entry of Aditya Birla Group's Birla Opus.

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