Stocks

Asian Paints Share Price Rises 5% Despite CCI Probe Over Market Practices

Is Asian Paints Share Price Rallying Too Soon Despite the Mixed Analyst Calls on Valuation and Recent Lows?

Aayushi Jain

Key Takeaways

  • The Asian Paints stock has rebounded nearly 5% from Wednesday’s low, defying negative sentiment due to the CCI probe.

  • Asian Paints hit its highest level since May 5, following a 12% surge since June 11 after RIL offloaded a major stake.

  • SBI Mutual Fund acquired 35 million shares in June, now holding over 5.35% of the company.

  • The stock is under scrutiny by CCI over alleged misuse of market dominance, as claimed by Grasim's Birla Opus Paints.

Asian Paints share price rose 1.06% in early trade on July 3, 2025, reaching ₹2,445.10 as of 11:55 AM IST. The stock opened at ₹2,428.90 and touched an intraday high of ₹2,464.40. The low for the day stood at ₹2,428.00. The share price has gained 5.3% in the last three sessions. This rebound has taken it to the highest level since May 5, 2025.

Current Market Performance

Asian Paints share price hike occurred even as the Competition Commission of India (CCI) ordered a probe into the company. This suggests investors are brushing off near-term concerns. Trading volume stood at 1,029,070 shares. The total turnover is around ₹2,515.87 crore. The VWAP was ₹2,449.49, and the stock beta stood at 0.63, indicating lower volatility.

Asian Paints share price chart as of  12.06 PM on July 3, 2025, shows gains of 0.93%:

The stock’s price has risen 12% since June 11, when Reliance Industries sold 35 million shares at ₹2,201 per share. The deal, done through Siddhant Commercials, was worth approximately ₹7,703.5 crore. Despite the sale, Reliance still holds 8.7 million shares in Asian Paints.

SBI Mutual Fund Increases Stake

SBI Mutual Fund added to the bullish sentiment. On June 12, it acquired 35 million shares, increasing its total holding to 5.35% of Asian Paints. The fund purchased various schemes, as confirmed in an exchange filing.

Also Read: IDFC First Bank Share Price Inches Up 0.14% to ₹77.35: Breakout Ahead?

CCI Probe Raises Regulatory Concerns

CCI has launched an antitrust investigation after a complaint from Grasim Industries. Grasim, through Birla Opus Paints, accused Asian Paints of limiting distributor access by using restrictive contracts.

The preliminary findings suggest a possible abuse of market dominance. The regulator has ordered its director general to submit a report in 90 days. Asian Paints has responded by stating it is reviewing the order. The company plans to take legal action and will fully cooperate with CCI.

Analyst Ratings and Valuation Metrics

The analyst's view on Asian Paints is mixed. Of 34 analysts, 12% recommend Buy, while 32% suggest Sell, and 24% say Underperform. The stock trades at a TTM PE of 63.95, which is above the sector average of 54.69. The P/B ratio is 12.09, and the dividend yield is 1.01%.

Competitive Pressure Mounts

JM Financial remains cautious. It praised the company’s brand strength and supply chain, but noted its market edge is slipping. Over the past two years, competitors like Birla Opus and JSW Paints have gained share. The premium segment, once dominated by Asian Paints, now faces serious competition.

Market Outlook

Asian Paints still holds over 50% market share, with a market cap of ₹2.34 lakh crore. But rising competition and regulatory issues may pressure its growth. For now, institutional buying and recent recovery offer some support. However, the final CCI verdict could decide the stock’s long-term direction.

Also Read: What's Next for Nvidia Stock: Will It Surpass $200?

FAQs

1. What is the Asian Paints share price on NSE today?

It is ₹2,445.10 as of 11:55 AM on July 3, up 1.06% from the previous close.

2. What is the target price of Asian Paints shares?

Analysts remain divided, with no strong consensus amid regulatory concerns and industry competition.

3. What is the latest Asian Paints’ news?

Asian Paints is under CCI investigation after Birla Opus alleged abuse of market dominance.

4. Are Asian Paints overvalued today?

Yes, with a P/E of 63.95, it trades above the sector average, raising valuation concerns.

5. What is the future growth of Asian Paints?

Growth outlook is cautious due to rising competition, though long-term fundamentals remain solid.

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