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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Economic Pulse

REUTERS SHOWCASE

Apple Result

Apple Result

Apple's iPhone sales beat Street but iPad volumes slide.  Full Article 

Nadella's Paycheck

Nadella's Paycheck

New Microsoft CEO Nadella's pay tops $80 mln with big stock awards.  Full Article 

Deregulation Impact

Deregulation Impact

Private fuel retailers to dip toe, not dive back, into India  Full Article 

Airport Accident

Airport Accident

Total CEO de Margerie killed in Moscow plane accident - airport spokeswoman.  Full Article 

Gold Import

Gold Import

RBI will not change gold import rules - sources  Full Article 

Idea Results

Idea Results

Idea Cellular Q2 profit up 69 percent  Full Article 

An RBI First

An RBI First

RBI releases minutes of financial stability council's Aug meet  Full Article 

IBM Earnings

IBM Earnings

IBM ditches 2015 operating EPS target, shares slump 7 pct  Full Article 

Reuters India Mobile

Reuters India Mobile

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