Shares of Asian Paints Ltd jumped by Rs 95.80 to Rs 4,750 in the early minutes of trading today following the annoucement that its board would meet on May 9 to consider sub-division of the equity shares of face value of Rs 10 each.
The stock gained 2.06 per cent to trade at Rs 4,750 which is close to its 52-week high of Rs 5,047 that it had touched on March 21, 2013.
However, the valuation at current levels look rather stiff. During the previous FY, the company's sales was Rs 7,964.16 crore, the net profit Rs 958.39 crore and the EPS was Rs 99.92. In the Q3 of current fiscal, the company's earnings were at Rs 2,536.97 crore, the net profit Rs 312.03 crore and the quarterly EPS was Rs 32.53.
The company has been trying to expand its business profile. Asian Paints Ltd announced in March an arrangement with the promoters of the Sleek Group for acquiring a 51 per cent stake in the Sleek Group that is into manufacturing, selling and distributing kitchens, kitchen components etc with an all India presence.