ICICI Securities 'underweight' on Indian paint stocks as competition rises

Berger Paints India

02/06/2023 10:29

** Analysts at ICICI Securities advises investors to stay
"underweight" in paints stocks as the sector sees increased
competition
    ** Brokerage cuts rating of Akzo Nobel India Ltd  AKZO.NS 
to "reduce" from "buy" while retaining "reduce" for Asian Paints
Ltd  ASPN.NS , Berger Paints India Ltd  BRGR.NS , Kansai Nerolac
Paints Ltd  KANE.NS , Indigo Paints Ltd  INDG.NS 
    ** Says, "war in paints sector to likely to commence soon"
with Astral Ltd  ASTL.NS , Pidilite Industries Ltd  PIDI.NS ,
J.K. Cement Ltd  JKCE.NS  entering the sector and Grasim
Industries Ltd  GRAS.NS  on track to launch in FY24
    ** Adds, GRAS to test launch likely in 1HFY24, ASTL to
relaunch brand name in FY24, PIDI introduced Haisha decorative
paints in three states and JKCE acquired Acro paints and
relauched it as JKMaxx
    ** Brokerage believes INDG, BRGR to be most likely to be
impacted by the increase in competitive pressures while KANE and
AKZO to be least impacted
    ** Stocks of ASPN, KANE, INDG and AKZO trading down between
0.35% and 0.87%, while BRGR trading up at 0.2% at 2:50 p.m. IST
    

 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))