Now Reading: Asian Paints surges 2.7% ahead of dividend ex-date
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Asian Paints surges 2.7% ahead of dividend ex-date
The Story in Brief
Shares of Asian Paints rose 2.74 per cent to ₹2,408.50 by midday on Tuesday, 3 November 2026, as investors rushed to secure an interim dividend of ₹5.75 per share before the ex-date and record date on Wednesday, 4 November. Traded volumes hit 12.55 lakh shares worth ₹303.05 crore by 12:45 pm, indicating above-normal activity.
The stock remains roughly 12.5 per cent down year-to-date and well below its 52-week high of ₹2,985.70 from December 2025. Analysts are broadly constructive but cautious after a soft Q2. Anand Rathi maintained a Buy but cut its 12-month target to ₹2,940 from ₹3,180. Axis Direct also kept a Buy but trimmed its target to ₹2,520 from ₹3,270, citing input cost pressure. JM Financial assigned an Add rating with a target of ₹2,595.
Asian Paints reported a 17 per cent year-on-year rise in consolidated revenue to ₹9,977 crore for Q2FY27, beating estimates, but EBITDA margins contracted 201 basis points to 15.6 per cent, missing the street’s 17.2 per cent expectation. Management maintained its full-year EBITDA margin guidance of 18-20 per cent, citing upcoming price hikes and benefits from the new VAE plant at Dahej.
Indian Opinion Analysis
The interim dividend announcement lifted Asian Paints' stock in a session that was the last chance for buyers to qualify, but the broader picture remains mixed. The company beat revenue estimates in Q2 but missed on EBITDA margins, which contracted sharply. Management is betting on price hikes and the new Dahej VAE plant to restore margins to its 18 to 20 per cent full-year target, but analysts have cut price targets sharply, pointing to input cost pressure. Wednesday's ex-date will show whether the dividend-driven volume spike sustains or fades.
Source: thehindubusinessline.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
