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Why is Asian Paints's stock falling despite strong revenue growth?
Asian Paints's stock dropped 0.65% on Monday to ₹2,459.60, making it one of the top losers on the Nifty 50—despite the company's strong annual revenue growth in recent years.
Annual revenue growth story
Quarterly results have been a bit of a rollercoaster: revenue and profits dipped sharply in late 2024 and early 2025 before bouncing back.
Even so, annual revenue climbed from ₹21,712cr in 2021 to over ₹35,000cr in 2024, then eased slightly this year.
Profitability concerns weigh on stock
The main concern is profitability—return on equity fell from a strong 29% last year to about 19% now.
While Asian Paints has kept its debt low and paid out steady dividends, those moves haven't fully reassured shareholders who are watching profit swings closely.