Asian Paints’ stock opened lower on February 26 because several global financial research firms have reduced their target prices for the company. They’re concerned about increased competition in the paint sector, especially with Grasim Industries entering the market with their Birla Opus brand.
CLSA, one of these firms, has downgraded Asian Paints’ rating to ‘Sell’ from ‘Underperform’ and significantly reduced their target price from Rs 3,215 to Rs 2,425, which is a big drop of about 24.57%. They believe that Asian Paints will face tough competition from Grasim Industries in the near future, which could affect its growth and profit margins.
Despite this, CLSA thinks that Asian Paints might still maintain its market position in the long run. However, they’ve lowered their estimates for Asian Paints’ financial performance in the fiscal years 2025 and 2026 by around 8% and 10% respectively.