Asian Paints shares rise 4% after two-phase price hike on rising input costs

Shares of Asian Paints Ltd., India's largest paint manufacturer, opened as much as 4% higher on Tuesday, March 24, after the company announced a 6-8% price hike across its portfolio with effect from April 10.

The price increase comes amid rising raw material costs, driven by geopolitical uncertainties.

The sector had earlier implemented a 2-3% price hike, with further increases anticipated.

Brokerage firm Macquarie has maintained an 'Outperform' rating on Asian Paints, with a price target of ₹3,100 per share.

Asian Paints plans to implement the 6-8% price hike in two phases.

The first round will come into effect from April 10, 2026, covering categories such as emulsions, enamels, primers, distempers and the Neo Bharat range.

The company has also increased prices of thinners from April 10, with the hike expected to be significantly higher, although the exact quantum has not been disclosed.

A second round of price hikes of 6-8% will be implemented from April 21, 2026, across the remaining portfolio.

This includes segments such as SmartCare waterproofing, tile adhesives and wood finishes.

Meanwhile, crude oil prices edged higher on Tuesday after declining 10% in the previous session. Brent crude futures rose 1% to $100.94 per barrel, while US crude gained 1.9% to $89.84 per barrel.

Higher crude oil prices are a negative for paint companies, as crude derivatives form a key component of their raw material costs.

Of the 38 analysts tracking Asian Paints, 14 have a 'Buy' rating on the stock, eight recommend 'Hold', and 16 have a 'Sell' rating.

Shares of Asian Paints ended Monday's session near the day's low, closing 3.4% lower at ₹2,120.80. The stock has declined 23% so far this year.

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