Asian Paints Jumps 2.5% After Rs 7,703 Cr Block Deal But Morgan Stanley Slashes Target; What Analysts Suggests

Asian Paints Stock: India's largest paint manufacturer, Asian Paints Ltd rose by as much as 3% on Thursday, June 12, following a significant block trade executed in the pre-market session. Around 3.5 crore shares of the company changed hands during the pre-open block window, according to available data.

Asian Paints Share Price After Large Block Deal on June 12

Shares of Asian Paints climbed 2.5% on June 12 following a major block deal valued at Rs 7,703 crore. Reports indicate that around 3.5 crore shares-representing approximately 3.64% of the company's equity-were traded through the block window.

This block transaction represented 3.64% of the company's total outstanding equity, highlighting a considerable shift in shareholder positions. However, the identities of the buyers and sellers involved in the trade have not been officially disclosed.

Asian Paints Shareholding: LIC, ICICI Prudential MF, SBI MF, Siddhant Commercials, and Retail Investors Hold Major Stakes

As of the March 2025 quarter, mutual funds in India held a 5.67% stake in Asian Paints, with ICICI Prudential Mutual Fund and SBI Mutual Fund among the major institutional investors. The Life Insurance Corporation of India (LIC) also had a substantial 8.29% stake in the company, based on the latest shareholding data.

In addition, more than 11.73 lakh retail or small shareholders, each holding an authorized capital of up to Rs 2 lakh, collectively owned 11.84% of the company's shares. Among other significant public shareholders was Siddhant Commercials Pvt. Ltd., which held a 4.9% stake as of March 31, 2025.

Asian Paints Stock Ratings: 22 Analysts Say 'Sell', Morgan Stanley Slashes Target

Despite the sharp uptick in share price, brokerages have shown increasing caution towards the stock. Earlier this week, Morgan Stanley issued its lowest price target yet for Asian Paints, becoming the third brokerage firm to assign a target price below the ₹2,000 level.

The global investment firm highlighted growing competitive pressure in the paints segment and noted that Asian Paints had lost 424 basis points of market share in the previous financial year, a decline that exceeded its prior estimates. In its bear case scenario, Morgan Stanley has projected a potential stock price of ₹1,307, citing factors such as rising competition, weak volume growth, and declining profit margins.

Overall sentiment among analysts covering Asian Paints has turned bearish. Out of the 38 analysts tracking the stock, 22 have a "Sell" rating, 10 recommend "Hold", and only 6 analysts have issued a "Buy" rating. While the recent surge in trading activity reflects heightened investor interest, many market experts remain cautious about the stock's medium- to long-term prospects amid changing industry dynamics.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.