Asian Paints has been downgraded to a ‘Sell’ rating by CLSA, as the company’s growth and margins are expected to face challenges from competitive pressure.

Asian Paints’ share price has been significantly impacted as a result of recent developments. The brokerage firm has revised its target price for the company, reducing it by 24.57% from its previous value. This downward adjustment reflects the concerns raised by various global brokerages regarding the intensified competition in the paint sector, particularly with the entry of Grasim Industries. Consequently, Asian Paints’ shares opened in the red on Monday, February 26. It is evident that the company may face challenges in maintaining its competitive edge in the face of this heightened competition.