Asian Paints Faces Pressure as Grasim Industries’ Birla Opus Enters Paint Sector: Brokerages Slash Target Prices

Shares of Asian Paints experienced a decline at market open on Monday following significant target price cuts by global brokerages. The entry of Grasim Industries with its brand Birla Opus into the paint sector has heightened competition and raised concerns for Asian Paints’ market position.

Notably, CLSA downgraded Asian Paints to ‘Sell’ from ‘Underperform’, slashing the target price by approximately 24.57% to Rs 2,425. The brokerage anticipates intensified competitive pressure in the paint sector, likely impacting Asian Paints’ growth and margins in the near term.

Goldman Sachs also adjusted its target price for Asian Paints to Rs 2,825, revising down EPS estimates for FY25 and FY26. Macquarie, however, maintained an ‘Outperform’ rating with a target price of Rs 4,000, noting the comprehensive distribution strategy of Grasim Industries and Birla Opus.

Aditya Birla Group revealed the ambitious vision for its new venture, targeting initial revenue of Rs 10,000 crore and profitability within three years. The launch of Birla Opus Paints Business saw the inauguration of three plants located in Panipat, Ludhiana, and Cheyyar, signifying Grasim Industries’ significant investment in the decorative paints business in India.