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MARKET EYE-Morgan Stanley starts India's Asian Paints at 'overweight'
January 17, 2013 / 5:07 AM / 5 years ago

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

* 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.

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