Paint industry could see further downsides on demand, competitive pressures

Q3 could see weak volumes; hurdle for incumbents is new entrants in the sector

Ram Prasad Sahu Mumbai

Source: Adobe Stock

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.

Also Read

Falling raw material costs to aid margin expansion for Asian Paints

Near-term margin concerns an overhang on Kansai Nerolac Paints' stock

TCS Q2 result: Brokerages upbeat on margin improvement; macro risks remain

Brokerages lower Reliance's FY23 earnings estimates after Q1 miss

Asian Paints gains 3%, hits 8-month high on hopes of margin improvement

NCLT asks lenders to delay round of second auction for Reliance Capital

Land dispute case: SC orders DLF to pay Rs 235 crore to Noida Authority

Vedanta to acquire debt-laden Meenakshi Energy for Rs 1,440 crore

Microsoft to reduce 10,000 jobs globally amid bleak global outlook

IBC overhaul seeks to give adjudicating authority a power boost

First Published: Jan 18 2023 | 10:58 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to