Asian Paints, a household name in India’s paint industry, has recently faced a drop in its share price. As of 11:55 AM on June 13, 2025, the Asian Paints share price stands at ₹2,203.80 down by 0.70% from its previous close of ₹2,219.40. This fall comes after a major stake sale by Reliance Industries, which triggered a wave of market reactions and investor concerns.
In this article, we will take a deep look at the current status of Asian Paints shares, the impact of the Reliance stake sale, the company's financial health, technical indicators, analyst opinions, and whether investors should be worried or hopeful.
Asian Paints Share Price: Quick Overview
- Current Price (June 13, 2025): ₹2,203.80
- Previous Close: ₹2,219.40
- Change: -₹15.60 (-0.70%)
- Opening Price Today: ₹2,175.00
- Day’s High: ₹2,208.00
- Day’s Low: ₹2,174.80
- Market Cap: ₹2,11,253 crore
- 52-Week High: ₹3,394.90
- 1-Year Return: -25%
Over the past year, investors in Asian Paints have seen nearly 25% value erosion in their holdings. That’s a big drop for a company once considered a “safe bet” in the FMCG and consumer discretionary sector.
Reliance Stake Sale: What Happened?
On June 12, 2025, Reliance Industries, through its affiliate Siddhant Commercials, sold 3.5 crore shares of Asian Paints in a block deal. The total value of this transaction was a massive ₹7,703 crore. This sale represented a 3.64% stake in the company.
The buyer? SBI Mutual Fund, which acquired the entire lot.
The average purchase price in the block deal was ₹2,201 per share. After this transaction, Reliance’s total stake in Asian Paints fell from 4.90% to just 1.26%.
This major offloading caused high volatility in the stock. On the day of the sale, Asian Paints shares dropped more than 2% intraday before recovering slightly. The deal raised questions — why is Reliance selling? Is it a red flag? Should retail investors worry?
Weak Earnings and Financial Performance
Asian Paints has not been performing well in terms of earnings either.
In Q4 FY25, the company reported a 45% decline in consolidated net profit, down to ₹700.83 crore. Revenues also dropped by 4.25% year-on-year to ₹8,358.91 crore.
Reasons for Weak Performance:
- Soft demand from consumers
- Increased competition from new entrants
- Raw material cost inflation
- Changes in consumer preference
The company’s trailing twelve-month (TTM) EPS is ₹38.23 a 32.84% drop compared to the same period last year.
Valuation Concerns
Even though earnings are falling, the stock still trades at a very high valuation:
- Price-to-Earnings (P/E) Ratio: 57.61 (vs sector average of 50.98)
- Price-to-Book (P/B) Ratio: 11.73
- Book Value per Share: ₹187.91
- Dividend Yield: 1.13%
This shows that Asian Paints is still considered expensive, especially for value investors who prefer strong earnings and steady dividend income. With falling profits and rising competition, the high P/E ratio is becoming harder to justify.
Analyst Opinions Are Turning Negative
Market experts and brokerages are also becoming cautious. Out of 35 analysts:
- Only 11% suggest a ‘Buy’
- 31% recommend ‘Underperform’
- 29% suggest a ‘Sell’
One of the most respected global firms, Morgan Stanley, now has a target price of ₹1,909, indicating a potential 15% downside from current levels.
They believe Asian Paints could lose its decorative segment market share by 209 basis points over the next 3 years.
Technical Indicators Show Weakness
On the charts, Asian Paints is showing a weak trend. It is trading below all major moving averages — the 5-day, 20-day, 50-day, 100-day, and 200-day averages.
The Relative Strength Index (RSI) is 31, which is very close to the oversold zone (typically considered 30 or below). However, there are no clear signs of a reversal yet.
Other Technical Details:
- Total Volume Today: 856,094 shares
- 20-day Avg Volume: 1,078,595 shares
- VWAP (Volume Weighted Average Price): ₹2,194.22
The lower trading volume indicates a lack of strong buying interest.
Competition in Indian Paint Market Is Rising
One of the biggest challenges Asian Paints faces today is the rise of new players in the paint industry. Companies like Birla Opus have entered the space with aggressive pricing strategies and innovation.
This has hurt the pricing power that Asian Paints enjoyed for decades.
Impact of Rising Competition:
- Margins under pressure
- Market share at risk
- Consumers now have more choices
- Valuations may get re-rated downwards
This shift in market dynamics may prevent Asian Paints from commanding the same high P/E multiple it once did.
Should You Invest in Asian Paints Now?
Let’s break it down into pros and cons.
Positives
- Strong brand trust and recall
- Largest distribution network in India
- Financially sound company with low debt
- Long-term track record of growth
Negatives
- Recent earnings are disappointing
- Valuation is still very high
- Reliance’s exit creates doubt
- Analyst ratings and technicals are weak
- Competition is rising rapidly
So, if you are a long-term investor with patience and faith in the brand, you might consider watching the stock and entering at a deeper correction. But if you're looking for short-term gains, it may be better to stay away for now.
Expert Advice
Many experts suggest that investors should take a wait-and-watch approach. A few more quarters of earnings will reveal whether Asian Paints can recover and adapt to the changing market.
Keep an eye on:
- Future earnings reports
- Market share in Q1 and Q2 FY26
- Price behavior around ₹2,000 levels
- Any major changes in management strategy
Final Thoughts
The Asian Paints share price is down by 0.70% today, continuing its year-long downtrend. The block deal by Reliance Industries, along with weak quarterly results, has added pressure on the stock.
Investors need to be cautious. Though Asian Paints is a strong brand, the near-term picture is cloudy. With rising competition, weak technicals, and poor analyst sentiment, this once “safe” stock might not be so safe anymore at least for now.
Stay informed, review your goals, and invest wisely.
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