#ChoiceBroking Pick Of The Week - #ASIANPAINT

1.  Asian Paints Limited was established way back on February 1,1942 and today stands as Indias largest and Asias third
largest paint company. Asian Paints operates in 17 countries and has 25 paint manufacturing facilities in the world
servicing consumers in over 65 countries.
• The company manufactures paints in the category of Decorative, Automative and Industrial segment. Apart from these,
the company also manufactures various Acessories like, Wall Primar, Wood Primer, Putty and Stainers etc. Driven by its
strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1967.
• Besides, Asian Paints, the group operates around the world through its subsidiaries Berger International, Apco Coatings,
SCIB Paints and Taubmans, SCIB Paints-Egypt, Asian Paints. In 10 markets, it operates through its subsidiary, Berger
International Limited; in Egypt through SCIB Paints; in 5 markets in the South Pacific it operates through Apco Coatings
and in Fiji and Samoa it also operates through Taubmans.
• Berger International Limited in November 2002, became a part of the Asian Paints Group. Today, the name of Berger is
synonymous with quality and innovation. BIL has presence across three regions viz. Middle East, Caribbean and South
East Asia. Asian Paints participates in the Industrial Coatings segment directly, through a 50:50 JV with PPG Inc. of US as
well as through a 100% subsidiary
• On the recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself into Growth, Decorative and
International business units and has adopted SCM and ERP technology. Asian Paints aims to become the 5th largest
decorative paint company in the world .
 Technical Outlook
 On a weekly chart, the stock has formed Hammer Candlestick with enough volume along with that we got bullish
reversal confirmation, as next proceeding candle is trading with higher low than the hammer candle and sustain above
the high of Hammer. This type of setup on chart confirms the surrender from sellers, as buyers have determined the
price is too attractive to pass up and quickly get into the stock. Also, we might witness proceeding candles to continue
to form higher lows, which indicate that the buyers will support the pullback buy and bidding up shares.
 Besides, the stock has given rebound move after taking the support of its horizontal trend line which is placed at 850
level which suggests northward direction.
 Moreover, on a daily chart, the stock has been trading above its 21 days moving average which is placed at 894 level
which shows that near to medium-term trend is up and the stock could further accelerate its upside movement from
the present level.
 Even on a smaller time frame, the stock has been trading in a higher top higher bottom formation since last two weeks
which signifies upward movement in the counter.
 A daily, as well as weekly RSI, is reading with positive crossover. Apart from this, weekly RSI has just come out from its
oversold zone which points out for positive breath in the stock.
 Based on the above technical structure, we are expecting good upside movement in the counter in few trading days.
Company ASIANPAINT
Recommendation Buy
Sector : PAINTS & VARNISHES
Buying Range : 929 & Upto 911
Price Potential : 1060
Stop Loss (Closing Basis): 870
Mkt Cap (Rs. Cr.): 88985
TTM EPS (Rs.) 18.16
TTM Sales (Rs. Cr.) 12533
BVPS (Rs.) 66.06
Reserves (Rs. Cr.) 6240
P/BV 14.04
PE 51.09
Bloomberg Code : APNT:IN
Reuters Code : ASPN.BO
TW = Twelve Months
TTM= Trailing 12 months
SEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Pick of the Week: Asian Paints Ltd.
7th Jan, 2017
www.choicebroking.in *Please Refer Disclaimer on Website

2. Pick of the Week: Asian Paints Ltd.
7th Jan, 2017
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual FundsSEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
This is solely for information of clients of Choice Broking and does not construe to be an investment advice. It is also not intended as an offer or solicitation for the purchase and sale of any financial instruments. Any action taken by you on the basis of
the information contained herein is your responsibility alone and Choice Broking its subsidiaries or its employees or associates will not be liable in any manner for the consequences of such action taken by you. We have exercised due diligence in
checking the correctness and authenticity of the information contained in this recommendation, but Choice Broking or any of its subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any
person from any inadvertent error in the information contained in this recommendation or any action taken on basis of this information. Technical analysis studies Aprilket psychology, price patterns and volume levels. It is used to forecast future price
and Aprilket movements. Technical analysis is complementary to fundamental analysis and news sources. The recommendations issued herewith might be contrary to recommendations issued by Choice Broking in the company research undertaken as
the recommendations stated in this report is derived purely from technical analysis. Choice Broking has based this document on information obtained from sources it believes to be reliable but which it has not independently verified; Choice Broking
makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. The opinions contained within the report are based upon publicly available information at the time of publication and are
subject to change without notice. The information and any disclosures provided herein are in sumAprily form and have been prepared for informational purposes. The recommendations and suggested price levels are intended purely for trading
purposes. The recommendations are valid for the day of the report however trading trends and volumes might vary substantially on an intraday basis and the recommendations may be subject to change. The information and any disclosures provided
herein may be considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any disclosures provided herein do not constitute a solicitation or offer to purchase or
sell any security or other financial product or instrument. The current performance may be unaudited. Past performance does not guarantee future returns. There can be no assurance that investments will achieve any targeted rates of return, and there
is no guarantee against the loss of your entire investment.
POTENTIAL CONFLICT OF INTEREST DISCLOSURE (as on date of report) Disclosure of interest statement – • Analyst interest of the stock /Instrument(s): - No. • Firm interest of the stock / Instrument (s): - No.
Disclaimer
Contact Us
Kkunal Parar ( Sr. Research Associate)
kkunal.parar@choiceindia.com
PERFORMANCE TRACKER
www.choicebroking.incustomercare@choiceindia.com
Kapil Shah(Research Associate)
kapil.shah@choiceindia.com
Amit Pathania (Research Associate)
amit.pathania@choiceindia.com
Vikas Chaudhari (Research Associate)
vikas.chaudhari@choiceindia.com
Date
Type
of Call
Equity Initiated SL TGT Result
%
Return
Profit / Loss
Total
Profit
24.09.16 Buy APLLTD 678 630 795 Book Profit@682on13.10.16 0.59 4.00 294.99
01.10.16 Buy GSPL 156 143 180 Book Profit@157on06.10.16 0.64 1.00 320.51
08.10.16 Buy ABIRLANUVO 1418 1323 1680 StoppedOuton03.11.16 -7.90 -112.00 -3949.22
15.10.16 Buy BEL 1269 1200 1435 Book Profit@1310on28.10.16 3.23 41.00 1615.45
26.11.16 Buy CIPLA 565 528 640 Book Profit@578.15on09.12.16 2.33 13.15 1163.72
10.12.16 Buy HCLTECH 803 749 930 Book Profit@833on15.12.16 3.74 30.00 1868.00
24.12.16 Buy IOC 313 285 365 Book Profit@325on30.12.16 3.83 12.00 1916.93
3230.36Total
Kkunal Parar
Digitally signed by Kkunal Parar
DN: cn=Kkunal Parar, o=Choice Equity Broking Pvt Ltd., ou=Research
Dept., email=kkunal.parar@choiceindia.com, c=IN
Date: 2017.01.07 15:31:18 +05'30'