MARKET EYE-Morgan Stanley starts India's Asian Paints at 'overweight'

Thu Jan 17, 2013 10:35am IST

Related Topics

Stocks

   

* Morgan Stanley initiated coverage of Asian Paints Ltd
 with an "overweight" rating and a target price of
5,220 rupees.
* The investment bank says the paint maker will enjoy "strong"
revenue growth, with gross margins expected to expand by 300 bps
in fiscal years 2012-2015.
* Asian Paints also deserves a premium in terms of valuations,
Morgan Stanley says. 
* "We think competitors are unlikely to match its distribution
reach and logistics strength over the next five years," the bank
writes in a note, dated Thursday.
* "And we believe valuations should be viewed in the context of
earnings resilience, improving return ratios, better payout
ratios, and successful innovations," Morgan Stanley adds.
* Asian Paints shares up 0.8 percent at 4,311.50 rupees.
FILED UNDER:

Reuters Showcase

Markets Weekahead

Markets Weekahead

Column - Caution advised in a trader’s market  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

GDP Revised

GDP Revised

Economic growth revised up by almost 50 percent  Full Article 

Australian Open

Australian Open

Williams overpowers Sharapova to win 19th grand slam  Full Article 

Houston's Daughter

Houston's Daughter

Bobbi Kristina Brown revived after found unresponsive in tub  Full Article 

India Art Fair

India Art Fair

Art fair turns India's capital into art hub.  Full Article 

Movie Review

Movie Review

"Rahasya" is an ode to Agatha Christie.  Full Article 

Review: Hawaizaada

Review: Hawaizaada

Movie Review: Hawaizaada  Full Article | Related Story 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage