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Informist, Tuesday, Dec. 2, 2025

 

By Anjana Therese Antony

 

MUMBAI – Bulls rushed to the derivatives chain of Asian Paints after foreign broking firm UBS upgraded the stock rating and also raised the target price for the stock. Premiums on deep out-of-the-money call contracts of the company rose manifold while those on put options more than halved, indicating the possibility of further rise in the stock price in the near term. Long positions were also added to the futures series of Asian Paints, with open interest across contracts rising significantly. 

 

Following UBS' suggestion, the stock hit an almost-13-month high of INR 2,962 on the National Stock Exchange Tuesday and closed 3% higher at INR 2,954.40. Its near-term support is seen at INR 2,940-INR 2,900 and resistance at INR 3,000-INR 3,150, according to a technical and derivatives analyst at a domestic broking firm. 

 

Premiums on call options INR 3,000-INR 3,240 expiring at the end of the month rose 168-189% and those on out-of-the-money put contracts INR 2,900-INR 2,680 fell more than 50%. The maximum addition of open interest was at INR 3,000 call and INR 2,900 put contracts. Long bets were also added to the futures series, with the December contract closing 3.5% higher at INR 2,978 and open interest increasing 3% to almost 11 million. The January series closed 3% higher at INR 2,990 and open interest increased 31% to 200,000.

 

According to media reports, UBS upgraded the stock rating to 'neutral' from 'sell' and raised the target price by 52% to INR 3,200. This is 8% higher than the current market price of the stock. The brokerage house said the outlook about the company for the second half of 2025-26 (Apr-Mar) looks bright after it reported a solid growth in volume in the September quarter. On the earnings front, UBS estimates a 12% compounded annual growth rate for 15 years.

 

However, the competition intensity may not have completely waned as its competitor Grasim Industries' paint business, Birla Opus, is yet to announce its strategy although the latter's planned capacity is operational, the broking firm said. Birla Opus had started commercial operations at its manufacturing plant at Kharagpur in West Bengal in mid of October with an annual capacity of producing water-based paint of 180 million litres. 

 

For the quarter ended September, Asian Paints had reported a consolidated net profit of almost INR 10 billion on a revenue of more than INR 85 billion. Of the 22 research reports available about the company with Informist, 10 broking firms have a 'buy' or equivalent rating on the stock with an average target price of INR 3,114. Another six have a 'hold' view and the remaining six have a 'sell' or equivalent recommendation on the stock. 

 

--Nifty 50 December closed at 26228.90, down 105.80 points; 196.70-point premium to the spot index
--Nifty 50 January closed at 26408.10, down 97.70 points; 375.90-point premium to the spot index
--Nifty 50 February closed at 26548.00, down 95.00 points; 515.80-point premium to the spot index

 

HDFC Bank, Reliance Industries, ICICI Bank, State Bank of India, Bank of Baroda, Asian Paints, Canara Bank, Vodafone Idea, Axis Bank, Union Bank of India, Punkaj Bank, Bharti Airtel, Hindustan Unilever, Infosys, Ashok Leyland, One 97 Communications, and Glenmark Pharmaceuticals were the most actively traded underlying stocks Tuesday.  End

 

Edited by Deepshikha Bhardwaj

 

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