 "Paints")
Paint companies have lagged behind their consumer peers in the past year. While the four largest listed paint companies have seen marginal negative returns, the S&P BSE Fast Moving Consumer Goods (FMCG) and the National Stock Exchange Nifty FMCG indices have delivered a solid 16 per cent return during the same period.
Initially, volume growth and reduced costs bolstered the sector’s sentiment, but brokerages have grown cautious due to increased competitive pressures.
The entry of new players and the necessity for additional advertising investment are anticipated to impact incumbent players’ profitability.
Worries about slowing volumes and a sharp increase in
