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Asian Paints shares experienced a surge of over 4% on Thursday, November 13, after the company reported a strong Q2 FY26 performance, leading to the stocks reaching a new 52-week high. The stock has now risen six days in a row on positive sentiment from a strong profit along with stable margins and resilient demand for decorative paints.
Asian Paints opened at Rs. 2,836.30, up from the previous close of Rs. 2,773.40, and gained as much as 4.5% to hit an intraday high of Rs. 2,898.20 on the BSE.
As of the time of publication, shares were trading at Rs 2,875, up 3.8%, one of the better large-cap counters during the session.
The paint maker has now gained over 14% for November so far and increased 7% in October. Year to date, the stock is up about 25%.
Asian Paints reported a consolidated net profit of Rs. 993.6 crore for the July-September quarter, or an increase of 43% YoY, with expectations already exceeded. Bloomberg consensus from analysts had guessed at around Rs. 894 crore profit.
Asian Paints reported revenue from operations of Rs 8,514 crore, a 6.4% YoY increase mainly from strong decorative paint demand and better cost efficiencies. The company announced an interim dividend of Rs 4.5 per share in FY26, with a record date of November 18 and payment on or after November 27.
In its earnings note, Asian Paints noted a 10.9% growth in volume in its domestic decorative business as well as positive momentum in automotive coatings and industrial coatings contributing to overall performance.
Its international business grew 10% YoY to Rs. 846 crore, while profit before tax reached Rs. 76 crore.
JM Financial kept a ‘Reduce’ rating with a target price of Rs. 2,800, commenting that the recent 20% rally may have capped near-term upside despite the operational strength.
Motilal Oswal retained a "Neutral" position with a target price of Rs. 3,000, mentioning the visibility of improved demand and stable competitive intensity.
Elara Securities reiterated a 'Sell' rating with a target of Rs. 2,600, flagging rich valuations and modest growth expectations for FY26.
Morgan Stanley, meanwhile, stayed 'Underweight' with a target of Rs. 2,194, implying a potential 20% downside from current levels.
Analysts all agreed that Asian Paints had operational resilience in Q2 with recovery of volumes, despite the near-term limiting further potential due to elevated valuations and competition.
Technically, the stock has resistance on the upside near Rs. 2,900 and support on the downside near Rs. 2,780 - Rs. 2,800. Staying above the levels may indicate continued strength.
