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

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Videocon d2h IPO

Videocon d2h IPO

Videocon d2h files for up to $113 million IPOs  Full Article 

Asian Economy

Asian Economy

Asian factories slow in Sept, push inflation ever lower  Full Article 

EBay Divests PayPal

EBay Divests PayPal

EBay follows Icahn's advice, plans PayPal spinoff in 2015  Full Article 

New 'Windows'

New 'Windows'

Microsoft names next operating system 'Windows 10'.  Full Article 

Reuters India Mobile

Reuters India Mobile

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