Mukesh Ambani makes multibagger returns by selling Rs 7,700 crore worth of Asian Paints shares

Billionaire Mukesh Ambani-led Reliance Industries (RIL) on Thursday made multibagger returns by selling 3.5 crore shares of Nifty bluechip stock Asian Paints in a large block deal worth Rs 7,703.5 crore.

"Please note that 3.50 crore equity shares of Asian Paints held by Reliance Industries Limited through Siddhant Commercials Limited have been sold today at a price of Rs 2,201 per share, leaving a balance of 87 lakh equity shares of Asian Paints," RIL said in a regulatory filing.

However, the buyer isn't yet known. Following the block deal, Asian Paints shares rose over 2% but ended the day 0.43% higher at Rs 2,218 on BSE amid an overall sell-off on Dalal Street.

Back in January 2008, RIL had picked up a 4.9% stake in Asian Paints via its subsidiary for just Rs 500 crore right when markets were in a tailspin amid global financial crisis and the collapse of Lehman Brothers.

Asian Paints shares have shed over 30% in the past 2 years, making it one of the worst-performing bluechip stocks in that period. Its once-impregnable fortress is now under siege — notably from Birla Opus Paints, a new entrant backed by the Aditya Birla Group.

According to Elara Securities, Asian Paints' market share has fallen from 59% to 52% in FY25. The erosion is stark, and it’s happening fast.

“We strongly believe that as a brand we need to take calibrated action to ensure that we tackle the competition in a more sustainable way,” Asian Paints CEO Amit Syngle told investors recently.

But headwinds abound. The company has posted muted revenue growth for four straight quarters, citing sluggish urban demand and an early Diwali. More concerning is the margin pressure. Despite lower raw material costs, higher rebates and increased competition have shrunk gross margins year-on-year.

Brokerages have taken note. Nuvama recently cut its FY26-FY27 earnings estimates for Asian Paints by 6-8%, forecasting a modest 7.2% EPS CAGR through FY28. It also slashed the target price to Rs 2,200, keeping its rating neutral and assigning a valuation of 45x forward earnings — a notable 20% discount to the stock’s 10-year average.