Shares of Asian Paints, India’s largest paint manufacturer, rose over 4% in intraday deals on Tuesday, March 24, emerging as one of the top performers in the Sensex pack of stocks, boosted by the signs of de-escalation in the Middle East conflict that somewhat pulled crude oil off highs and a price hike move.
Asian Paints’ share price rose 4.38% to ₹2213.40 on the BSE today. In the last trading session, the₹2,116, its 52-week low”> stock had tumbled to a low of ₹2,116, its 52-week low, amid sustained pressure as investor concerns mount that elevated oil prices could impact the company’s margins and demand in the near term.
Asian Paints to hike prices as Brent crude surges
According to multiple media news reports, citing dealers, Asian Paints will hike prices across its portfolio in two phases, with effect from April 10. The hike comes amid the rise in raw material prices due to the ongoing conflict in the Middle East.
A CNBC TV-18 report said that Asian Paints will implement a 6-8% price hike in two phases.
The first phase of the price increase will take effect from April 10, 2026, and will apply to products such as emulsions, enamels, primers, distempers, and the Neo Bharat range, the report stated. Prices of thinners will also be raised from the same date, with the increase expected to be significantly higher, though the exact extent has not been specified.
A second round of hikes, ranging between 6% and 8%, will come into force from April 21, 2026, covering the rest of the product portfolio, the business news channel said.
Systematix, earlier this month in a report, had stated that in the past (over 4Q21-2Q22, 4Q22-1Q23, when crude climbed by 15-25% QoQ, Asian Paints took staggered price hikes of 2-4%. Despite these hikes, volume growth remained sturdy at 13-14% over 2H22/ FY23.
According to the brokerage’s channel check, demand remains stable with value growth in mid-single digits. Sales in the economy segment – economy emulsions, distempers – are faster vs premium/ luxury sales in most regions and for players, including Asian Paints and Birla Opus, it added.
“While there is near-term caution on the impact of volatile crude on pricing, margins and volume growth, we note this is still an unfolding story with multiple possible endgames,” it said as it continued to maintain a buy call on Asian Paints, with a target price of ₹3,160 as the company’s pricing power remains positive in the current environment. It awaits industry demand acceleration before turning more positive.
Furthermore, today’s rise in Asian Paints stock was also supported by crude’s pullback from recent highs of around $120. Brent crude prices rebounded to back above $100 after falling 11% in the last session.
Brent crude oil prices rose toward $104 a barrel as President Donald Trump delayed a threat to strike Iran’s energy infrastructure for five days, claiming there were talks with Tehran. Iran denied negotiations were taking place, while Israel kept up attacks. US crude benchmark West Texas Intermediate advanced almost 4%.
In the past, a 10% QoQ increase in crude prices has led to a 130bps QoQ decline in gross margins, as per Systematix’s estimates.
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