Asian Paints shares increased to their highest level in 14 weeks after brokerages, citing dealer checks, reported the country’s largest paint maker is planning to raise prices across its portfolio to offset rising raw material costs. According to brokerages, the increases could be in the region of 7-9% and be applicable from November 12, Bloomberg reported.

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In early trade on Wednesday, Asian Paints shares rose as high as 5.9% to Rs 3,145 per share. The scrip’s trading volume was five times the usual for this time of day, and it was the highest performer among peers in early trade.

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According to Macquarie, a brokerage, the company’s rates for entry-level distempers will rise by Rs 3 per litre. Enamel paint prices will increase by Rs 12 per litre. The premium Royale and Ultima segments will see an increase of Rs 35 to Rs 45 per litre. In the waterproofing segment, the price increase will be between Rs 15 and Rs 25 per litre. For wood coatings, prices will increase between Rs 25 and Rs 50 per litre.

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Analysts anticipate that the price increase will greatly alleviate the steep input cost inflation that harmed Asian Paints’ profitability in the second quarter. The proposed price rise is greater than the combined increase of almost 7.5% during the previous six months.

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The company’s management blamed the second quarter’s lower than expected profitability on “steep inflation witnessed in raw material pricing.” Following the earnings, Asian Paints’ managing director and chief executive officer, Amit Syngle in an interview with BloombergQuint, hinted at price increases to counter the impact of “persistently high inflation”.

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The Asian Paints stock today touched a high of Rs 3145.60 after opening at Rs 3022.45 and is currently trading at Rs 3105.55 on the Bombay Stock Exchange.