Mumbai, Feb. 2 -- Brent crude, a key raw material for paint makers, was down around 5% on the day, providing relief on input costs.

The brokerage expects Asian Paints to deliver volume growth of about 11% in Q4, aided by improving cost dynamics and a shift toward more rational competitive behaviour in the industry. It noted that a new paint entrant is likely to adopt a more measured strategy following price hikes implemented in January.

The research firm also expects a reversal of the earlier 10% promotional intensity on 4-litre packs. From a valuation perspective, the brokerage said Asian Paints is now trading in a more comfortable zone.

Asian Paints, established in 1942, is the largest listed company in India's decorative paints segm...