Asian Paints will be a stock to watch out for on Friday as it will be posting its Q2 numbers.

The stock is down about 15-16 percent from its record level of around Rs 1,490 hit in July because of higher crude, weaker rupee and high valuations in the fast moving consumer goods (FMCG) space which has led to a bit of a correction in this sector itself.

Here is what is expected from the company today:

At current market price, the stock still trades at 43 times two-year forward earnings. With all those things in perspective, Asian Paints is likely to report a decent quarter. 12.5 percent on the revenue front is expected, while EBITDA is likely to be absolutely flat.

Net profit is seen higher by about 10 percent. The revenue break up of about 12.5 percent would comprise of 8-10 percent domestic volume growth.

2-4 percent realisation growth is expected. The company had taken the price hikes during the quarter given the rise that has been seen in input costs. So there are a couple of factors for the volume growth itself. Last two quarters, they have grown on a favourable base, so a double digit growth is expected.

First Published:Oct 22, 2018 8:28 AM IST