Macquarie in a report stated that Asian Paints has announced an average 2 percent price hike across their portfolio effective May 1.
Over the past few months, none of the large paint companies had increased prices despite an increase of almost 25-30 percent in the input prices. Now, with Asian Paints increasing the prices marginally, the street liked the development as it talks about the company’s strategy of having gained market share from the unorganised players by delaying price hikes to squeeze out competition.
As a result of this, Asian Paints is Macquarie’s preferred pick. They have an outperform rating with a target of Rs 2,900 on the stock.Watch video for more.