In Monday’s trading session, shares of India’s leading paint and decor company moved up by 0.73 percent to Rs. 2,938.65, after the company announced an increase in the production capacity by investing Rs. 1,305 crore in the Mysuru plant situated in Karnataka.
The shares of Asian Paints Limited closed in the green at Rs. 2,925, up by nearly 0.3 percent, as against its previous closing price of Rs. 2,917.3, with a market capitalisation of Rs. 2.8 lakh crore.
What’s the news:
Asian Paints Limited has notified the stock exchanges about the expansion of its Mysuru plant’s capacity to 6 lakh KL per annum, following approval from the Karnataka State Pollution Control Board in Bengaluru.
Originally established on 18th September 2015, the paint manufacturing plant initially had a production capacity of 3 lakh KL per annum, which was operating at around 78 percent of its capacity. With the recent approval, the plant’s capacity has now been increased to 6 lakh KL per annum.
This expansion aims to meet the company’s medium-term capacity needs, with an investment of approximately Rs. 1,305 crore, financed through internal accruals.
Also Read
Financial & Stock Performance:
In terms of financials, the revenue from operations stood at Rs. 8,701.5 crore in Q4 FY23-24, falling by 0.6 percent YoY from Rs. 8,750.8 crore in Q4 FY22-23, while the after-tax profit grew by 1.3 percent to Rs. 1,275.3 crore from Rs. 1,258.4 crore, during the same period.
Asian Paints’s management expects a positive outlook on rural markets and hence anticipates Q1 demand to be supported by this positive sentiment.
The stock has delivered negative returns of nearly 12.8 percent in one year and around 13.8 percent of negative returns year-to-date.
As per the shareholding pattern of March 2024, the Promoters hold a 52.63 percent stake in the company, Foreign Institutional Investors (FII) hold a 15.89 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 19.82 percent and 11.66 percent stake in Asian Paints, respectively.
About the company:
Asian Paints Limited is the largest integrated Home Décor player and is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home décor, bath fittings and providing related services.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
