Asian Paints shares fall 3.4% to hit 52-week low after two top executives resign, check details

Asian Paints stock declined as much as 3.4% on the National Stock Exchange of India (NSE) to ₹2,265.35 on Thursday. Notably, this is the fourth straight session of decline for the share price. Meanwhile, the stock is down over 8% so far this month and more than 32% in 2024.

On Wednesday, Asian Paints announced that Shyam Swamy, vice president of home improvement, and Vishu Goel, associate vice president of retail sales, have resigned due to “personal reasons”. The announcements were made through two separate stock exchange notifications.

One of the notifications read, “Vishu Goel - Associate Vice President, Retail Sales, Commercial and Marketing, member of the Senior Management, has resigned from the services of the company. His resignation was accepted on 17th December 2024 and he has ceased to be an employee of the Company and a member of the Senior Management with effect from the close of business hours on 17 December 2024.”

Another notification said, “This is to inform you that Shyam Swamy - Vice President, Home Improvement, Décor, Services and Retailing, member of the Senior Management, has resigned from the services of the Company. His resignation was accepted on 17th December 2024 and he has ceased to be an employee of the company and a member of the Senior Management with effect from the close of business hours on 17th December 2024.”

The company did not give any further details on the reason behind the sudden departure of these executives.

In a separate exchange filing, the company also announced two new changes in the management team.

The company appointed Mr. Ashish Rae, currently Associate Vice President -Project Sales as Associate Vice President - Retail Sales, Marketing & Commercial and as a senior management personnel of the company with effect from 2nd January 2025.

Further, Mr. Gagandeep Singh Kalsi, Associate Vice President - Strategy, Business Development, a senior management personnel, will also handle Décor and Services with effect from 23rd December 2024.

Key triggers behind recent stock fall

Asian Paints shares have seen a selloff in the past couple of months due to increasing competition in the paints industry. The entry of new players like Birla Opus and JSW Paints threatens the dominance of established players like Asian Paints and Berger. Also, increasing inflation in urban areas is adversely affecting the company's demand outlook.

While announcing earnings for the September 2024 quarter, Asian Paints said that the paint industry faced subdued demand during the period. Domestic Decorative coatings segment volumes declined marginally, while overall domestic coatings revenue declined by 5.5% for the quarter impacted by muted consumer sentiments and extended rains and floods in some parts of the country.