LIC (Life Insurance Corporation of India), the country’s largest institutional investor, has increased its shareholding in Asian Paints to 7%. This was revealed in an exchange filing on December 10, 2024. LIC’s stake rose from 6.6% at the end of the September quarter to 7.01%, following open market purchases made between January 1 and December 9, 2024. The insurer acquired 1.93 crore additional shares at an average price of ₹2,891.25 each, raising its total holdings to 6.72 crore shares.
Asian Paints is a leading player in India’s paints and coatings sector, with a market capitalisation of ₹2.3 lakh crore. The company offers various range of products, including decorative paints, waterproofing solutions, adhesives, and home décor items like modular kitchens and sanitary ware. LIC stated that the acquisition aligns with its regular investment strategy and does not involve related-party transactions.
Asian Paints faced a tough second quarter in FY25, reporting a 42.4% year-on-year drop in consolidated net profit to ₹694.64 crore. This was a significant fall from ₹1,205.42 crore in the same quarter last year. Revenue from operations also dipped by 5.3% YoY to ₹8,003.02 crore. The company attributed the decline to subdued consumer demand, extended rainfall, and floods in certain regions, which impacted its domestic decorative coatings segment.
CEO Amit Syngle highlighted the challenges but remains optimistic about long-term growth in the industry.
Asian Paints, India’s largest home decor company with over 80 years of history, owns major brands like Asian Paints, Berger, and Apco. The company offers a wide range of products, including wall paints, coverings, waterproofing solutions, textured finishes, wall stickers, and mechanised tools. It also provides adhesives, modular kitchens, sanitaryware, lighting, soft furnishings, and uPVC windows.
Asian Paints share price is currently trading at ₹2,406.60, up ₹17.70 or 0.74% as of December 11, 9:27 am. The stock opened at ₹2,399.75 and has since reached a high of ₹2,407.45 and a low of ₹2,392.65 during the session. With a market capitalisation of ₹2.31 lakh crore, the company has a price-to-earnings (P/E) ratio of 50.51 and a dividend yield of 1.35%. The stock has a CDP score of A- and a 52-week range between ₹2,385.05 and ₹3,422.95.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 11, 2024, 9:30 AM IST
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