Brokerage firm Jefferies has given a 'Hold' rating for Asian Paints, stating that it expects the company to remain a strong player in the Indian paints sector. Jefferies has a price target of Rs 2,500 for the stock.

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The brokerage note also states: “In the medium-term, double-digit revenue growth is likely to be sustained. The current oligopoly structure in the industry yields higher pricing power for the company and with this the balance sheet is strong.”

Jefferies also states that the surge in the key input prices and rise in COVID-19 cases cause near-term uncertainty for the firm. After considering all the factors the brokerage firm has forecasted earnings per share compound annual growth rate of 15 percent for FY20-23.

Last week, Asian Paints introduced the 18th edition of ColourNext. The company has unveiled the four-colour trends for 2021 – Habitat, A Home New World, Felicity and Z Futures. The company also announced the Colour of the Year, which is Cherish.

Amit Syngle, managing director and CEO, Asian Paints, said, “While 2020 taught us many hard lessons and seeking refuge may have been the most natural response.”

First Published:Apr 5, 2021 1:21 PM IST