Here is research Note from CLSA on Asian Paints with Stock Target Price,
In an unprecedented inflationary (raw material prices up +21% in 1H) setting, price hikes have been limited (7.5% in 1H), which led to its weakest gross margin and Ebitda margin delivery in the past 24 and 12 years. Management expects calibrated price hikes to aid a return to an 18-20% Ebit margin in the next few quarters. Amid concern over raw material shortages and supply chain challenges, Asian Paints has built up very large inventory which should enhance its competitive positioning. Capturing medium term margin stress, we lower our earnings estimates and reduce our target price from Rs3,600 to Rs3,500
