Asian Paints share price rises after UBS raises its outlook—Check fresh target

Asian Paints shares moved higher in early trade after global brokerage UBS upgraded the stock and raised its target price. The stock was trading at Rs 2,891.70, up 0.84 per cent, at the time of filing the story. It opened at Rs 2,867 and hit a high of Rs 2,918.70. The market cap stands at Rs 2.77 lakh crore.

UBS upgraded Asian Paints from Sell to Neutral and raised the 12-month target price to Rs 3,200. In its optimistic scenario, the fair value could rise up to Rs 4,000. The brokerage said the disruption cycle in the industry is easing and the worst phase is now behind the company.

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UBS highlighted that H2FY26 volume momentum looks strong and dealer channel stocking has improved. The entry of Birla Opus has had limited impact on market share. The brokerage expects long-term revenue CAGR of around 12 per cent and sees margins rebounding over FY26–27.

UBS expects Asian Paints’ EBIT margin to move higher over the next three financial years. It estimates margins at 15.2 per cent for FY26, 15.8 per cent for FY27 and 16.1 per cent for FY28. The stock has already gained nearly 25 per cent since mid-October, reflecting improving sentiment.

Asian Paints reported a 43 per cent rise in consolidated net profit to Rs 993.6 crore in Q2 FY26. Strong demand across urban and rural markets and better cost efficiency supported the performance. Revenue rose 6.4 per cent to Rs 8,513.7 crore compared with Rs 8,003 crore in the same quarter last year.

International business: Sales grew 9.9 per cent to Rs 846 crore. On a constant-currency basis, revenue rose 10.6 per cent.

Home décor business: Bath fittings revenue fell 4.7 per cent to Rs 79.3 crore. The kitchen segment declined 7.2 per cent to Rs 97.7 crore. White Teak sales dropped 15.2 per cent, while Weatherseal sales jumped 56.9 per cent.

Industrial business: Asian Paints PPG posted a 10.2 per cent rise in sales to Rs 292.6 crore. PPG Asian Paints recorded 13.3 per cent growth with sales at Rs 594.3 crore.