The paints sector has been an underperformer with most listed majors shedding 17-25 per cent since their highs in August. Barring Akzo Nobel, which has generated positive returns in this period, paint companies have lagged the benchmarks and their peer indices that have delivered flattish returns over this period. Despite the weak returns, brokerages believe that there are multiple near- to- medium-term worries for the sector, which could open the way for further downgrades and disappointment on the return front. These include weak December quarter earnings, muted volumes, competitive pressures as new players enter the segment, and a lack of valuation comfort.