Asian 'paints' a pretty picture

Asian Paints is on a roll. The stock has been hitting new highs consistently since 8^th of Jan and today too, it hit a new high at Rs.841.65.

With crude oil hitting new lows and now people talking about $40/barrel, this paint stock and others are all up as they use crude oil derivative as one of the major raw materials which in turn accounts for 50% of the total operating cost.  Thus there is hope that with prices dropping, its margins will improve. In fact research houses expect around 300 bps margin improvement in this fiscal.