$ASIANPAINT Q1 Tops Estimates; Nomura Reiterates Buy, Raises Target Price to ₹3,750

Synopsis: $ASIANPAINT Paints reported better-than-expected Q1 FY27 performance, with revenue and margins exceeding estimates. Following the strong earnings, Nomura reaffirmed its Buy rating and increased the target price to ₹3,750. $ASIANPAINT s delivered a strong first-quarter performance for FY27, with sales rising 18% year-on-year, surpassing Nomura's estimate of 12.5% and the Bloomberg consensus forecast of 14%. In a research note dated July 29, Nomura retained its Buy recommendation on the stock and raised its target price to ₹3,750 from ₹3,600, citing stronger-than-expected earnings and sustained demand momentum. The company's volume growth stood at 9% YoY, broadly in line with expectations, while its operating profit margin (OPM) expanded to 20.6%, comfortably ahead of Nomura's estimate of 17.4% and the Bloomberg consensus of 18.1%. Describing the June-quarter performance as a "standout quarter," Nomura said Asian Paints witnessed robust demand during Q1 FY27 and expects demand conditions to remain stable. The company also maintained its FY27 volume growth guidance of 8–10%, despite a high base from the previous year and average price hikes of 12% during the quarter. The brokerage further noted that concerns over tougher year-on-year comparisons from the second quarter onward appear overdone, indicating confidence in the company's growth outlook.x Investment in securities market are subject to market risks. Read all the related documents carefully before investing,