Asian Paints Share Buy or Sell: After the Q1 results of Asian Paints, the share rose by about 3%. Know whether there is an opportunity to buy now or would it be better to wait a little.
Asian Paints Share Price Today: The first quarter (Q1) of the current financial year has had a great start for the shareholders of Asian Paints, the country’s largest paint company. The company has released the June quarter results today on July 29, in which its net profit has increased by a huge 40% year-on-year to ₹ 1,539.3 crore. As soon as the news of the explosive results came, the buying of Asian Paints shares increased in the stock market and the stock rose by almost 3% to reach the level of ₹ 2,828 on the National Stock Exchange (NSE). In such a situation, the question arises whether after this rise, should new investors take entry in the shares or would it be better to wait for a while? Let us understand…
Asian Paints: Bumper jump in both profits and earnings
- Not only has the company’s earnings increased, but there has also been a huge improvement in its working methods and profitable operating margins.
- The company’s total sales in the June quarter stood at ₹10,521.4 crore, which was ₹8,924.5 crore during the same period last year.
- The company’s net profit increased straight to ₹1,539.3 crore from ₹1,099.8 crore.
- The demand for paints has improved in urban areas as well as rural markets. Apart from this, the company has also benefited from the sale of premium range products.
Asian Paints Share: Share’s performance so far
Asian Paints has been a strong stock for investors for a long time. Its performance in the last few months and years has been excellent. The stock has given a profit of about 17.6% in the last one year. The stock has gained 6.33% in the last one month alone. The 52-week high of this stock is ₹2,985.70 and 52-week low is ₹2,115.00. The total market cap of the company is around ₹2,69,649.7 crore.
Asian Paints Share: Buy now, sell or wait a while?
If you are thinking of investing money in this stock, then keep 3 things in mind…
Crude Oil Prices
Chemicals related to crude oil are used in making paint. If the price of crude oil increases or decreases in the international market, it directly impacts the company’s profits.
Near 52-week high
The stock is currently trading very close to its 52-week high of ₹2,985.7. In such a situation, after the rise in the results, a slight decline or consolidation (staying within a range) may be seen in the market.
long term perspective
If you plan to invest for 2 to 3 years or more, then Asian Paints is a leader in its segment and may continue to benefit from continued strong demand.
What are experts saying about Asian Paints share?
Market experts say that there is a possibility of profit booking in the post-results rally, hence short term traders should wait for any small decline in the market. At the same time, if you want to add a strong stock to the portfolio for the long term, then the strategy of buying small amounts on every dip may be right.
Disclaimer: The information given in this article is for information and educational purposes only. Investing in the stock market is subject to market risks. There is no advice from our side to buy or sell any share. Before investing, please consult your Certified Financial Advisor.