Shares of paint companies continued their downtrend on Tuesday after both Asian Paints and Kansai Nerolac Paints reported less-than-expected earnings for the July-September period on Monday.

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Asian Paints shares opened at a loss of 5.70 percent at Rs 1,135.20 and further extended losses. The stock traded at Rs 1,129.05 at 2:40 pm on the NSE, still lower by nearly 6 percent, but recovering from the day's low of Rs 1,118.

Asian Paints reported a 14.4 percent fall in second-quarter profit, which missed analysts' estimates, hurt by higher expenses. The company's net profit fell to Rs 4.93 billion ($67.02 million) in the September-quarter from Rs 5.76 billion a year earlier, the company said in a statement.

Macquarie maintains "neutral" call on Asian Paints, at a target price of Rs 1,300 per share, while Deutsche Bank's target price is Rs 1,300 with "buy" call.

Kansai Nerolac Paints hit a 52-week low of Rs 343 in intra-day trade, after opening at Rs 370. The stock traded nearly 8 percent down at Rs 356 at 2:40 pm.

Brokerage houses have slashed target price of Kansai Nerolac as the company reported a 15.7 percent on year decline in the Q2 profit to Rs 122 crore. CLSA downgraded Kansai to "underperform" from "outperform," cutting target price to Rs 400 per share.

Deutsche Bank has cut stock price target to Rs 525 apiece, but maintains "buy" call. IDFC Securities rates "outperform" at a revised price of Rs 467 per share.

Berger Paints' shares also fell 4.3 percent to Rs 267.85 in a rub-off effect, impacted by overall poor sentiments in paint stocks. The company is due to announce its Q2 results on November 1.

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