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The stock of paint major Kansai Nerolac is up over 5.2 per cent in the past month, outperforming its peers, which have generated negative returns over the same period. While there are near-term headwinds for the company and the sector, a rebound in automotive (auto) volumes following the goods and services tax (GST) cut could improve the company’s performance.
Among listed companies, the paint and coating manufacturer — specialising in industrial coatings — has the highest exposure to the auto segment, with 30 per cent of its sales coming from this sector.
The medium-term trigger for the stock would be
