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,

The paint industry continued to be impacted by subdued demand conditions, especially in the urban centres, says Amit Syngle, MD & CEO of Asian Paints.

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 dropped over 5% on Wednesday after the company reported a 23.5% decline in consolidated net profit for the third quarter ended December 2024. The decline was attributed to muted demand and a weak festive season.

The industrial business registered a growth of 3.8 per cent on the back of general industrial and refinish segments, while its home decor business benefited from progress on its network expansion