Asian Paints share price: In the recent correction in the market, many blue chip stocks also saw a significant decline. One of these names is of Asian Paints. The share price of Asian Paints has fallen nearly 14 per cent since the beginning of this year (YTD). At the same time, it has fallen by about 6 percent in the last one month. In comparison, the benchmark Nifty-50 has lost just 4 per cent in the last one month.
Avneesh Chandra, Head, Institutional Equities, SMIFS, said, “One of the most popular market theory is ‘buying on dips’. This means that whenever a good quality stock sees a significant fall, it should be viewed as a buying opportunity. I think Asian Paints should be seen as the best buying opportunity among the large-caps where stocks have declined.”
The Ukraine-Russia crisis, rising crude oil prices and inflation are being seen as the main reasons behind the fall in Asian Paints shares. Despite this fall, the company’s strong fundamentals and rock-solid company management have given investors confidence, according to Chandra.
Shirish Pardeshi, FMCG Analyst at Centrum Broking says that Asian Paints shares are advised to buy at this level due to several reasons. He said that the company has proved its market leadership in the paint sector. At the same time, its market share is also increasing continuously and its execution capacity has improved significantly.
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He said that Asian Paints since its inception has faced several shocks of crude oil price jump and it has managed to handle it smartly each time. Shirish Pardeshi is confident that this time also the company will tackle the problem of crude and its performance will not be heavily affected. He says that there is a very strong demand for Asian Paints products in the markets especially in Tier II, III and IV markets.
Experts were concerned that the rise in crude oil prices could impact Asian Paints’ profits. This is because it uses derivatives of crude oil to make paints and the higher cost of raw materials can reduce the margins of the company.
The reason why investors remain confident in Asian Paints shares is that its shares have jumped 10 per cent in the last five days. Shares of Asian Paints closed at Rs 2,935, up 0.76 per cent on Friday. However, since the beginning of the year 2022, it has declined by 14.24 percent and in the last one month by 6.63 percent.
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