Asian Paints shares fell 5.10 per cent to hit a low of Rs 2,235. The stock has corrected 23 per cent in the past three months, and is now trading at 41 times FY27 EPS, as per analyst estimates.

Rise in competitive intensity for market share, talent, and shelf-space, and mind share will keep Asian Paints' margins under pressure. To add to that, weakness in urban demand and a rise in competition in terms of mergers and acquisitions may also hurt earnings, ultimately leading to rating downgrade, Citi said.

Sharekhan recommended hold rating on Asian Paints with a target price of Rs 2475 in its research report dated February 05, 2025.

The share price of Asian Paints Ltd. dropped by about 5% following the release of subpar third-quarter results. Asian Paints announced the financial results of the Company for the quarter and nine-month period ended 31st December 2024.

Asian Paints reported a 6% decline in its revenue for the quarter compared to the year-ago period. The revenue of ₹8,549 crore was lower than the CNBC-TV18 poll of ₹8,830 crore.

Asian Paints Limited reports decline in profits, with decorative business affected by muted demand, while industrial business shows growth.