RIL sells 3.5 crore Asian Paints shares via Siddhant Commercials, says this

Reliance Industries Ltd (RIL) on Thursday said it sold 3.5 crore Asian Paints Ltd shares earlier today through Siddhant Commercials Limited at a price of Rs 2,201 per share. Siddhant Commercials Private Limited held 4,69,87,850 shares or 4.90 per cent stake in Asian Paints as of March 31, BSE data showed.

Siddhant Commercials is now left with balance of 87 lakh equity shares of Asian Paints, RIL told stock exchanges. 

Business Today had earlier reported  that Asian Paints saw 3,50,00,000 shares changing hands at Rs 2,201 apiece today, amounting to Rs 7,703.50 crore. 

The paints sector remained largely muted over FY25, reflecting stagnation driven by weak consumer sentiment, heightened price sensitivity, and pressure from competition. These factors led to noticeable downtrading, ultimately constraining both growth and profitability, Asit C. Mehta Investment Interrmediates said in a note.

"However, early signs of a recovery emerged in Q4FY25, with growth trajectory improving sequentially, for some players more than others. With price cuts of last year now in the base, revenue growth has started looking better, with reducing gap between value and volume growth. Some positives going ahead are in the form of reducing inflation, low crude oil prices, and expectations of consumption revival post a good monsoon season," it said.

For the March quarter, Asian Paints reported a 4.3 per cent YoY decline in consolidated revenue, falling short of expectations due to demand softness and cautious consumer sentiment. 

The decorative segment contracted 5.2 per cent YoY, with muted volume growth of 1.8 per cent, impacted by rising competitive intensity and downtrading. International revenues declined 1.5 per cent YoY, mainly due to macroeconomic headwinds in key African markets. In contrast, the industrial business grew 6.1 per cent YoY, driven by strong performance in the general industrial and auto categories. 

The management was cautiously optimistic amid macro uncertainty, anticipating demand recovery driven by urban markets and support from rural markets through a normal monsoon and continued government spending, Axis Securities noted.