Asian Paints shares fell 5.10 per cent to hit a low of Rs 2,235. The stock has corrected 23 per cent in the past three months, and is now trading at 41 times FY27 EPS, as per analyst estimates.

Rise in competitive intensity for market share, talent, and shelf-space, and mind share will keep Asian Paints' margins under pressure. To add to that, weakness in urban demand and a rise in competition in terms of mergers and acquisitions may also hurt earnings, ultimately leading to rating downgrade, Citi said.

"sell" rating on the stock, while the number of analysts with a "hold" and "buy" recommendation on Asian Paints stood at 11 and 10 respectively.

The share price of Asian Paints Ltd. dropped by about 5% following the release of subpar third-quarter results. Asian Paints announced the financial results of the Company for the quarter and nine-month period ended 31st December 2024.

After Asian Paints Ltd. posted disappointing results for third quarter, Citi Research cut its earning per share estimates by 3% and highlighted concerns regarding the near-term growth outlook. The brokerage maintained a 'sell' rating, with a target price of Rs 2,300 apiece, implying a 2.1% upside from Tuesday's closing price.

Asian Paints stock declines on weak Q3 results, with brokerages cutting target prices amid competition and demand concerns.