Asian Paints Shares Plunge Amid Profit Dip

Asian Paints shares fell over 9% after reporting a significant 43.71% decline in quarterly net profit, dropping to Rs 693.66 crore. The decline was attributed to lower demand, material price inflation, and reduced decorative coatings business. The stock hit its 52-week low despite attempts to offset costs with price increases.

Shares of Asian Paints dropped over 9% on Monday morning following the company's announcement of a striking 43.71% fall in net profit for the September quarter, which came in at Rs 693.66 crore.

The BSE recorded the stock at the 52-week low of Rs 2,507, while the NSE hit Rs 2,506, marking it as the biggest underperformer among the Sensex and Nifty listings.

Market observers attribute the decline to sluggish demand, heightened material costs, and a drop in domestic decorative coatings operations, though future margin recovery is anticipated as material prices soften and price hikes take effect.

(With inputs from agencies.)