Business Standard

Paint industry could see further downsides on demand, competitive pressures

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


Source: Adobe Stock

Ram Prasad Sahu Mumbai
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

Don't miss the most important news and views of the day. Get them on our Telegram channel

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.

Register to