India's largest manufacturer of paints and market leader Asian Paints Ltd. will be reporting its December quarter results on January 19. The company's shares, ahead of results, have declined 13 percent from their recent highs.

A CNBC-TV18 poll anticipates the company's topline to grow in double-digits on a high base and EBITDA margin to improve on a sequential basis.

For the quarter, the company's decorative volume growth is expected to be between 5-6 percent. Revenue growth for the quarter is likely to be more price led, compared to volume led.

During the December quarter, the company hiked prices by 15 percent, following a 2 percent hike in June and a 3 percent hike in September.

Asian Paints recently approved a capex plan worth Rs 2,000 crore to set up a new water-based paint manufacturing facility. The proposed facility will have a capacity of 4 lakh kiloliters per annum and will use the latest manufacturing technology to produce paints and intermediates in an environment friendly manner.

The move comes as one from the leader in an increasingly competitive market. Last month, JK Cement announced its foray into the paints sector with the acquisition of a 60 percent stake in Acro Paints for Rs 153 crore.

Asian Paints' proposed plant will increase the company's capacity by nearly 23 percent. The capex announcement is in addition to another Rs 7,000 crore capex announced in the September quarter for backward integration.

Target home care is likely to contribute 8-9 percent of overall sales compared to the recent 3-4 percent.

The street will keenly await management commentary on capex and competition.

At current levels, shares of Asian Paints are trading at 53 times earnings for financial year 2024.