Asian Paints on volatile run

Asian Paints is on a volatile run today. The stock which had closed yesterday at Rs.556.95, opened higher at Rs.562, going on to hit a new 52-week high at Rs.565. But since then, it slipped into the red, hitting an intra day low at Rs.534.35, currently down almost 4%.

The stock hit a new high on the back of its good numbers for Q4FY14, which were very much in line with expectations but soon, profit booking has come in and that pushed the stock into the red, despite the good numbers.

For Q4FY14, the company posted a 14% (YoY) rise in consolidated net profit at Rs.287 crore on a 21% jump in net sales at Rs.3266 crore. EBITDA margins, which the markets largely expected to be flat, were better, rising 35 bps to 14.9%. The results include consolidated financials of Sleek International Pvt Ltd, in which the company had acquired 51% stake on August 8’ 13. It was decorative segment which led the growth and that too thanks to rising demand in Tier II and III cities. On the other hand, industrial coating, which mainly depends on the auto sector was down due to subdued demand, Exports did well, especially in Bangladesh, Nepal and UAE.

The company ended FY14 with a 7% rise in net profit at Rs.1219 crore on a net sales of Rs.12,582 crore, up 16%.