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Spike in crude oil prices unlikely to be slippery for paint companies

Stable prices of other inputs and pricing power should protect margin profile, say analysts

colour, paint

After demand worries for the discretionary space were pointed out by some experts a few weeks back, the recent spike in crude oil prices, which were up over two per cent on Monday, has added to the concerns of investors, particularly for those who've bet on paint companies. Stocks of paint majors such as Asian Paints, Berger Paints and Kansai Nerolac fell by around two per cent in Monday’s trading session, following the decline in broader market indices, which were down 1.3 per cent. However, margin outlook still remains intact for paint companies. With the news that ...