Asian Paints' prospects look colorful. Know why

Shares of Asian Paints hit a 3-month high after India's largest decorative paints maker said it would set up a new plant in Karnataka at the cost of `2,300 crore rupees.

The water-based paint manufacturing unit will have a capacity of 6 lakh kilo per annum and will be Asian Paints' biggest facility once its up and running.

Asian Paints rose 1.1 percent to 847 rupees on the National Stock Exchange, hitting its highest level since April 16. Nearly 450,000 shares were traded in the first hour of trade compared with the 5-day average of 958,000 shares.

Asian Paints' market capitalisation has surged 45 percent in the past year to `81,200 crores.

The company is set to report its first quarter earnings on July 21st. Its shareholding pattern for June 30 revealed that Foreign institutional investors had pared their stake in the company to 17 percent compared with 18.09 percent in the quarter ended March.

(Image credit: Indiatimes)