Morgan Stanley starts Asian Paints at 'overweight'

Thu Jan 17, 2013 11:45am IST

Related Topics

Stocks

   

Reuters Market Eye - Morgan Stanley initiated coverage of Asian Paints Ltd (ASPN.NS) 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.

(Reporting by Manoj Dharra)

FILED UNDER:

REUTERS SHOWCASE

2015: India Outlook

2015: India Outlook

India in 2014: A dream run for markets.  Full Article 

Funding Woes

Funding Woes

Co-founder of SpiceJet seeks time to finalise rescue.  Full Article 

Flying Back on Course

Flying Back on Course

The inside story of the new Airbus A350 jet.  Full Article 

Oil Price Forecast

Oil Price Forecast

Oil prices likely to rebound in second half of 2015: poll  Full Article 

Deal Talk

Deal Talk

China's private sector suitors to drive Asian M&A deals in 2015.  Full Article 

Property Tycoon

Property Tycoon

Wang Jianlin, China's property tycoon, finds golden path to billions.  Full Article 

Cybersecurity

Cybersecurity

Internet outage seen in N. Korea amid U.S. hacking dispute.  Full Article 

Reuters India Mobile

Reuters India Mobile

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