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Analysts see rich valuations for paint, tyre stocks; time to book profit?

Shares of related companies have gained up to 84 per cent, as against a 14 per cent rise in the S&P BSE Sensex

paint, colours, wall, brush
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Lovisha Darad New Delhi

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Amid cooling raw material prices, the crude-oil linked companies crude oil-linked companies, which includes paint and tyre firms, have been on a roll over the past one year. Shares of related companies have gained up to 84 per cent, as against a 14 per cent rise in the S&P BSE Sensex. Analysts, however, believe stretched valuations in both these sectors could trigger a de-rating.

"Despite strong January-March quarter (Q4FY23) performance by paint and tyre companies, we believe that the positives are already priced-in, and foresee a near-term correction due to premium valuations. While the average valuation of paint companies stands

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First Published: May 23 2023 | 10:19 AM IST

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