Ganesh Chaturthi Stock Pick 2024: Sumeet Bagadia Calls This Breakout Stock A Buy

Asian Paints' market value, which stands at Rs 3,14,089.32 Cr, saw its shares close 1.13% higher on the BSE on Friday at Rs 3274.50 each. The stock saw a surge following a buy call issued by Choice Broking's executive director, Sumeet Bagadia, who identified the stock as a Ganesh Chaturthi pick for 2024. With the blessing of Lord Ganesh, the analyst believes that one can Asian Paints shares at Rs 3244 & upto 3175 for the target of 3562/3725 in the prevailing market conditions.

Asian Paints Share Price Target

Asian Paints (ASIANPAINT) is currently trading at Rs 3244 and has formed a symmetrical triangle pattern on the monthly chart with significant volume, indicating a strong bullish trend. A breakout above Rs 3250 could potentially drive the stock towards the Rs 3562 and Rs 3725 levels, with immediate resistance at Rs 3400. On the downside, the critical support levels are at Rs 3100 and Rs 3020, said Sumeet Bagadia.

Moreover, on the daily chart, the stock has broken out of a rounding bottom pattern, which further indicates strength. The Relative Strength Index (RSI) is currently at 56.9, suggesting an upward trajectory and growing buying momentum. Taken together, these technical indicators suggest that ASIANPAINT has the potential to reach the Rs 3562 and Rs 3725 targets in the near term, the analyst suggested.

A prudent strategy would involve considering buying opportunities on dips around the Rs 3175 level. Based on technical analysis and prevailing market conditions, ASIANPAINT appears to offer a promising buying opportunity for those targeting a price objective of Rs 3562 and Rs 3725. However, it is essential to implement prudent risk management strategies to navigate potential market fluctuations effectively, Sumeet Bagadia recommended.

Asian Paints Financials

Asian Paints' consolidated net sales decreased by 2.3% to Rs 8,943.2 crores in the quarter ended in June 2024 from Rs 9,153.8 crores in the quarter ended in June 2023. Its PBDIT [Profit before depreciation, interest, tax, other income, and exceptional items] (before share in profit of associates) dropped by 20.2% to Rs 1,693.8 crores from Rs 2,121.3 crores. The company's consolidated net profit dropped by 24.5% to Rs 1,170.0 crores in Q1FY25 from Rs 1,550.4 crores in Q1FY24 whereas profit before exceptional items and tax plummeted by 23.8% to Rs 1,603.6 crores from Rs 2,105.0 crores.

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.