Asian Paints shares plunge 5% post Q3 results; should you buy, hold or sell stock?

Analysts reported a positive base beginning Q4FY25 while predicting the company will experience slow growth in 2025 due to pressures in urban markets. The competitive landscape is expected to intensify in H1FY26 since Grasim Industries Ltd will start operating their plants and expand their distribution network.

Asian Paints stock decreased by 5.10 per cent reaching Rs 2,235 and it has shown a 23 percent drop over the last three months while it’s trading Asian Paints target price stands at 41 times FY27 EPS according to analysts.

Asian Paints usually manages to transfer inflation costs to customers but our model shows that challenging macroeconomic conditions will create obstacles for the company now. ICICI Securities indicated that the auto sector might experience cyclical slowdowns which will affect industrial coatings and set Asian Paints share price target of Rs 2,200 for the stock.

Antique Stock Broking reported that Asian Paints' management commentary was weak and that demand recovery will be gradual because of increased competitive intensity and urban market weaknesses.

The company will face profitability constraints during the medium term because of increased rebates/promotions and marketing expenditures. After evaluating the 3QFY25 results we reduced our FY25-27 earnings projections by 3-7 per cent and kept the 'Hold' recommendation but adjusted Asian Paints share price today to Rs 2,361 from Rs 2,527 based on 45 times FY27 earnings," Antique said.

The management is directing its efforts toward expanding the industrial business while the decorative sector experiences reduced growth. The management expects favorable monsoon conditions along with increased government spending to stimulate rural demand. HDFC Institutional Equities reduced its estimated EPS for FY26 and FY27 by 5-6 per cent due to slower volume growth while keeping its 'ADD' rating and setting a target price of Rs 2,450 for the stock.