Asian Paints stock slips to 52-week low, shares plunge after weak Q2 earnings and falling domestic paint sales

Shares of Asian Paints plunged further on Thursday, December 26, hitting a new 52-week low in morning trade while the broader market saw an upward trend.

The stock opened at ₹2,284 apiece on the NSE on Thursday, after closing 0.18% higher in the last trading session on Tuesday. The scrip slipped to a 52-week low of ₹2,261.05 apiece on the NSE. The shares are currently trading 0.79% lower at ₹2,266 per share.

The company’s market capitalisation stands at ₹2,17,258.30 crore as per NSE data. The stock of the Mumbai-based paint manufacturing company offering several related products and services has fallen by 31% in the last three months. Notably, the stock has plunged by over 18% since the company posted weak earnings for the second quarter of the current year.

The fall in the stock is fueled by a negative outlook by experts due to the decrease in domestic paint volumes. Analysts are concerned about the competition and future conditions for the company, leading to poor ratings for the stock.

Asian Paints Q2 results

Asian Paints declared its financial results for the July-September quarter of the current fiscal (Q2 FY25) year in November. The leading paint and coating manufacturing company reported a 42.4% fall in its consolidated net profit to ₹694.6 crore from ₹1,205.4 crore in the year-ago period. The company’s consolidated revenue for the reporting quarter also fell by 5.3% YoY to ₹8,003 crore as compared to ₹8,451.9 crore in the same quarter last year.

Additionally, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell by 27.8%, from ₹1,716.2 crore in Q2 FY24 to ₹1,239.5 crore in Q1 FY25. The EBITDA margin fell down by 480 bps to 15.5%.

Asian Paints’ standalone net profit for the reporting quarter decreased by 48.1% year-over-year (YoY) to ₹602.3 crore from ₹1,160.3 crore in Q2 FY24.

About Asian Paints

Asian Paints is one of the top paint and decor companies in India with a consolidated turnover of nearly ₹35,382 crore. The company has a presence in 15 countries and has expanded in the home decor segment along with its paint business. It has 27 manufacturing facilities around the world and serves customers in more than 60 countries.