CLSA has the following View on Asian Paints,
In the Indian consumer market, where deflation has been hampering earningsgrowth for most players, Asian Paints surprised with a strong margin expansionand double-digit volume growth. The continued slide in crude oil prices since theDec-15 quarter-end signals further margin gains ahead, even while management expectedly remains cautious. We upgrade our EPS estimates by 4-5% over FY16-18CL and retain O-PF, with a revised TP of Rs975 (vs Rs900 earlier);given the current rich valuations, EPS growth would be the key for stock price performance.
