Asian Paints surges 2.7% as investors rush ahead of dividend ex-date

Shares of Asian Paints climbed 2.74 per cent to ₹2,408.50 by midday on Tuesday, with the stock touching an intraday high of ₹2,443.40, as investors moved to secure an interim dividend of ₹5.75 per share.

Wednesday, November 4, is both the ex-date and record date for the payout, making today the last session for buyers to qualify.

Traded volumes hit 12.55 lakh shares worth ₹303.05 crore by 12:45 pm, pointing to above-normal activity. The stock remains well below its 52-week high of ₹2,985.70 hit in December 2025, and is down roughly 12.5 per cent year-to-date.

Analyst sentiment on the stock is broadly constructive but cautious after a soft second quarter.

Anand Rathi maintained a Buy with a revised 12-month target of ₹2,940, down from ₹3,180, valuing the stock at 45x September 2028 earnings.

Axis Direct kept its Buy but trimmed the target sharply to ₹2,520 from ₹3,270, citing near-term input cost pressure and cutting EBITDA estimates by 12–13 per cent for FY27 and FY28.

JM Financial assigned an Add rating with a target of ₹2,595, noting the stock has corrected roughly 16 per cent over the past three months and now trades below its long-term valuation averages.

The results, announced on October 29, were a mixed bag. Consolidated revenue rose about 17 per cent year-on-year to ₹9,977 crore in Q2FY27, beating estimates, but EBITDA margins contracted 201 basis points to 15.6 per cent, missing the street’s 17.2 per cent expectation.

Volume growth in the domestic decorative segment came in at 6.4 per cent. Management maintained its full-year EBITDA margin guidance of 18–20 per cent, citing upcoming price hikes, backward integration benefits from its newly commissioned VAE plant at Dahej, and improving product mix in the seasonally stronger second half.