India paint stocks to recover after FY25 demand woes, says Nomura

Berger Paints India

06/11/2025 10:26

Updates

** Nomura says India's paint stocks are set to recover following price moderation from weak demand in fiscal year 2025

** Adds, price moderation since Jan 2024 driven by the fear of Birla Opus' market disruption; Grasim Industries GRAS.NS launched paints business under the brand in early 2024

** Berger Paints BRGR.NS posts surprise Q2 profit drop, rev up 2%; shares rise 1.4%

** Ambit says BRGR's Oct sales weak, volumes to improve Nov onwards; expects 2H FY26 to trend better than H1

** Grasim down 6.3% after paint unit chief resigns; exit was notable as his role in scaling amid competition may weigh on near-term sentiment - Jefferies

** Asian Paints ASPN.NS up 4.7% after it gains higher weightage in MSCI's Global Standard Indexes effective Nov 24

** Nomura upgrades ASPN and BRGR to "buy" from "neutral", says the fear of disruption due Birla Opus' entry has not materialised

** YTD, BRGR, ASPN and GRAS up 21.3%, 14% and 10.3% respectively

 (Reporting by Urvi Dugar in Bengaluru)

 ((UrviManoj.Dugar@thomsonreuters.com;))