Is Asian Paints a good company with a bad stock?

The market keeps finding new reasons to label the paint giant as a ‘sell’, despite the company’s consistent track record.

A few days ago, I attended a results update with sector analysts from a leading brokerage. An investor asked a sell-side analyst what the house view on Asian Paints was since input cost concerns had now receded, though the stock inexplicably continued to languish. His response: “Input costs were NEVER a concern in Asian Paints; competition is the concern.”

Ah, the burden of being Asian Paints, a stock that strives to please but just cannot seem to do so lately. As a company, it is a cash machine that has consistently earned high RoIs for decades. This Rahul Dravid of …

Author

Ujval Nanavati

Ujval leads our Business vertical at The Morning Context. In a corporate career spanning 14 years, he has worked across startups, consulting firms, multinational corporations and large Indian companies, including India Infoline, ICICI, KPMG, Tata Steel and Jubilant Pharma. Ujval has been a freelance writer and trainer for eight years, with bylines in Forbes India and The Economic Times.

Editor, Business

ujval@mailtmc.com

Pune