Asian Paints shares on Wednesday (Feb 5) dropped as much 5 per cent as Q3 numbers failed to impress the Street. The Mumbai-headquartered paints company reported a decline in its revenue for the fourth consecutive quarter during the quarter under review while net profit fell by more than 20 per cent.

Sharekhan recommended hold rating on Asian Paints with a target price of Rs 2475 in its research report dated February 05, 2025.

Asian Paints reported a 6% decline in its revenue for the quarter compared to the year-ago period. The revenue of ₹8,549 crore was lower than the CNBC-TV18 poll of ₹8,830 crore.

Asian Paints stock declines on weak Q3 results, with brokerages cutting target prices amid competition and demand concerns.

Rise in competitive intensity for market share, talent, and shelf-space, and mind share will keep Asian Paints' margins under pressure. To add to that, weakness in urban demand and a rise in competition in terms of mergers and acquisitions may also hurt earnings, ultimately leading to rating downgrade, Citi said.

Asian Paints shares fell 5% after weak Q3 earnings, with net profit down 23% YoY. Brokerages slashed target prices, citing competition, pricing pressures, and demand slowdown. Some expect further declines,