Asian Paints Share Jumps Over 4% In Early Trade After Price Hike Plan

Shares of Asian Paints rose more than 4% in early trade on Tuesday after the company announced price hikes of 6% to 8% across its product portfolio in two phases starting 10 April.

At 12:06 pm, the company’s shares were trading 3% higher at ₹2185 a piece on the National Stock Exchange (NSE).

Asian Paints stock climbed to ₹2,215 apiece during the morning session. It came after a sharp decline of over 10% in the past month, when rising crude oil prices weighed on paint makers’ margins.

First Round Of Price Increase

The company will implement the first round of price increases from 10 April by 6% to 8%. This will cover the following products:

• Emulsions

• Enamels

• Primers

• Distempers

• Neo Bharat range

Prices of thinners will also be raised from the same date. The increase in this category will be higher than the rest of the portfolio.

Second Phase Of Price Increase

The company will roll out the second phase of hikes from 21 April. This will apply to segments such as the following:

• SmartCare waterproofing

• Tile adhesives

• Wood finishes

The staggered approach comes as companies try to pass on higher input costs without impacting demand sharply.

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Mixed Views On The Stock

Some brokerage houses remain positive on the stock, while others continue to stay cautious on valuations and near-term demand.

The broader view remains mixed, with growth visibility and margin trends still under watch.

Along with Asian Paints, shares of other paint companies like Berger Paints and Indigo Paints also rose in early trade.

Sources:

The Economic Times

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