Shares of Asian Paints gained Three in keeping with cent at Rs 1,769 on the BSE on Monday in an another way vulnerable market on sharper than expected recovery and healthy observation.

At 11:45 am, the stock was once as soon as purchasing and promoting 2.7 in keeping with cent higher at Rs 1,756, as compared to 0.6 in keeping with cent decline throughout the S&P BSE Sensex. It was once as soon as the absolute best Sensex gainer a number of the benchmark index’s constituents.

The keep an eye on mentioned that after an entire washout in April’20 as a result of extended lockdown, the company’s decorative business phase witnessed improving business necessities over the next two months. Thus, while the April-June quarter (Q1FY21) resulted in a damaging territory, the business registered a healthy double-digit amount growth throughout the month of June’20 to complete the quarter on a promising apply.

The other business segments in India along side the two business coatings business and each and every the segments throughout the Home Improvement elegance moreover witnessed improving tendencies in June’20, albeit at a lower pace. Profitability all through corporations was once as soon as smartly supported in the course of the softer raw material prices and the reasonably numerous worth control measures being actively pursued in the course of the Management, the company mentioned.

Asian Paints’ receive advantages previous to tax (PBT) in Q1FY21 decreased via 70.2 in keeping with cent to Rs 305.76 crore from Rs 1,025.24 crore, as a result of lower product sales. The company’s consolidated revenues declined 42.7 in keeping with cent to Rs 2,923 crore from Rs 5,105 crore throughout the corresponding quarter of previous fiscal.

“Despite healthy volume growth, earnings growth has been weak for several years now, which is likely to continue going ahead. Nevertheless, the likelihood of sharp earnings decline, as feared earlier, may not materialize. Therefore, it is possible that Asian Paints, unlike other discretionary peers, would emerge relatively unscathed from the COVID-19 crisis. With better than expected recovery, Asian Paints continues to remain market leader in a category with attractive long term potential,” Motilal Oswal Securities mentioned in results exchange.

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