Asian Paints declines after CLSA retains 'sell' given weak RoE

CLSA said macro factors, tapering growth and volatile crude are worries

Asian Paints shares fell 1.5 percent intraday on June 20 after CLSA retained its sell call on the stock with a target price of Rs 1,285, implying 7 percent potential downside from current levels.

"The paint maker has shown strong YoY rise in FY19 free cash flow but its return on equity is weak and even its commentary is a bit cautious on FY20," the research firm said, adding though management has always been conservative.

Company's forays into high-end bath and wardrobes signal effort on the non-paint portfolio, it said, adding macro factors, tapering growth and volatile crude are worries.

At 0935 hours IST, it was quoting at Rs 1,365.90, down Rs 15.85, or 1.15 percent on the BSE.

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