BENGALURU, July 18 Reuters Shares of Asian Paints fell as much as 4.5 in early trade on Thursday, a day after India39;s no.1 paint maker reported its steepest quarterly profit slide in three years, hurt by weak demand and price cuts.

Out of 34 analysts covering Asian Paints, at least six downgraded its shares after the results, while at least nine cut their price targets, LSEG IBES data showed.

Inflationweary customers switching to cheaper options have forced the market leader to cut prices amid intensifying competition after Grasim Industries39; entry into the paint sector.

Asian Paints39; margins are expected to remain under pressure due to increased marketing spends to stave off rising competition, analysts at Antique and Systematix said.

The company reported a profit below analysts39; estimates for the three months to June, while revenue also slipped on tough demand conditions amid heat waves and India39;s national elections.

Management clarified that this performance has nothing to do with rise in competition… but our concerns persist, Jefferies said in a note.

The company retaining its fullfiscal year guidance on doubledigit percentage volume growth implies a sales value growth of 8 for the remaining bit of fiscal 2025, Ambit Capital said.

Even with price hikes, that seems marginally steep, Ambit said.

Shares of Asian Paints, which were the secondworst percentage loser on the benchmark Nifty 50 in early trade, were trading 1 lower at 1020 a.m. IST. The…