Mumbai, June 12, 2025 – Shares of Asian Paints surged by nearly 2 percent in early trade on Wednesday following a large block deal involving around 3.5 crore shares, equivalent to 3.64 percent of the company’s total equity stake. The transaction was valued at a whopping ₹7,703 crore and was executed at a price of ₹2,201 per share in the block deal window.

Following the development, the stock was seen trading at ₹2,251 per share on the National Stock Exchange (NSE), recording its biggest single-day gain in a month, and snapping a two-day losing streak.

Massive Block Deal Lifts Sentiment

Market data showed that 3.5 crore shares changed hands, generating a total transaction value of approximately ₹7,703 crore. The block deal attracted strong investor attention amid an otherwise cautious trading session.

While buyer and seller identities were not disclosed, the size and scale of the transaction sparked considerable optimism around the stock, which had been underperforming in recent months.

Stock Performance: A Turnaround After a Slump

Despite today’s positive movement, Asian Paints stock remains under pressure on a longer-term basis. The share price had declined over 4.5 percent in the past month, 6 percent over the last six months, and a sharp 22.5 percent over the past one year.

Today’s rally could be viewed as technical support triggered by the block deal, rather than a fundamental shift, analysts noted.

Disappointing Q4 Results and Exceptional Items

The paint major recently reported weaker-than-expected earnings for the fourth quarter of FY25. The company posted a net profit of ₹692 crore, far below market estimates. A Moneycontrol poll had projected the net profit at approximately ₹1,069 crore for the January–March quarter.

Adding to investor concerns, Asian Paints also reported exceptional items totalling ₹182.96 crore, which weighed on profitability. These included:

• A loss of ₹83.7 crore on the divestment of its Indonesian subsidiaries

• Impairment losses of ₹77.8 crore on goodwill and ₹21.5 crore on intangibles related to the acquisitions of Obgenix Software (White Teak) and Causeway Paints (Sri Lanka)

Revenue Also Misses Estimates

The company's consolidated revenue for Q4 FY25 stood at ₹8,359 crore, representing a 4.3 percent decline year-on-year. This was also below expectations, as brokerages had estimated revenues to come in at ₹8,619 crore.

Amit Syngle, Managing Director & CEO of Asian Paints, attributed the underperformance to weak demand conditions across the paint industry.

“The weak demand conditions prevalent for the past few quarters continued to affect the paint industry even in the last quarter of the financial year,” Syngle said.

Industry Headwinds Continue

The paint industry in India has been battling sluggish demand, rising raw material costs, and intense competition from new entrants and existing players.

While Asian Paints has long been the market leader, it now finds itself facing competition from both domestic and global players expanding into decorative and industrial coatings.

The recent financial pressures coupled with losses on overseas ventures suggest a more cautious outlook for the company in the short term.

Conclusion: Temporary Bounce or Turnaround?

The 2 percent spike in Asian Paints’ share price following today’s massive block deal has buoyed investor sentiment, at least temporarily. However, with underwhelming quarterly results, demand-side pressures, and cost-side challenges, the long-term recovery of the stock remains uncertain.

Market analysts believe the current rally might be driven more by institutional interest via the block deal rather than any material change in fundamentals.

Investors are advised to watch future earnings, demand trends, and management commentary closely before making long-term commitments to the stock.

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