Shares of paint
companies were in focus with Asian Paints
and Berger Paints
India hitting their respective new highs on the BSE
on expectation of a healthy volume growth in April-June quarter (Q1FY19).
India has rallied 4% to Rs 307 on the BSE
in intra-day trade, surpassing its previous high of Rs 305 recorded on May 29, 2018. Asian Paints
hit a new high of Rs 1,348, up 1.7%, extending its past two days 2% gain on the BSE.
earlier today said that the board of directors of the company will meet on Tuesday, 24th July, 2018, to consider and approve the audited standalone financial results of the Company for the quarter ended 30th June, 2018 (Q1FY19).
likely to record sales growth of around 15% year on year (YoY) to Rs 43.88 billion in Q1FY19 mainly due to around 12% YoY volume growth. Higher volume growth would be largely on account of lower base (GST related de-stocking of inventory),”
ICICI Securities said in Q1FY19 results preview.
“The company has taken a price hike at different intervals (around 3% YoY) mainly to offset higher raw material prices. As a result, the EBITDA margin is likely to increase 66 bps YoY to 18%. Higher sales growth and expansion in EBITDA margin may result in PAT growth of 12% YoY to Rs 4.95 billion,” the brokerage firm said.
Kotak Institutional Equities expects Asian Paints
to report around 14% volume growth in the domestic decoratives business aided partly by the low base (2%) of the pre-GST June 2017 quarter.
“EBITDA margin expansion reflects operating leverage; we estimate flattish gross margins despite the recent RM inflation as we factor in the mitigating effects of price increases and strategic sourcing,” the brokerage firm said in results preview.