Dulux Paints maker Akzo Nobel India's Q2 profit rises on automotive sector demand

JSW Dulux

07/11/2024 08:48

Nov 7 (Reuters) - Paints maker Akzo Nobel India  AKZO.NS  reported a 4% rise in its second-quarter profit
on Thursday, mainly driven by a higher demand from the automotive sector, which helped outweigh muted retail
demand.
    The maker of Dulux Paints said its consolidated net profit rose to 979 million rupees ($11.61 million) in the
July-September quarter, from 942 million rupees a year ago.
    Revenue from operations rose 3% to 9.82 billion rupees.    
    For further earnings highlights, (click here)

KEY CONTEXT
    
    Akzo Nobel's results are in contrast to weak quarterly earnings among its peers, following higher rainfall
and price hikes.     
    Peer Berger Paints India  BRGR.NS  reported a bigger-than-expected drop in quarterly profit earlier this
week.    
    Paint makers hiked prices in the second quarter, as domestic competition intensified with Grasim Industries'
 GRAS.NS  entry into the sector earlier this year.    
    India also saw higher-than-normal rainfall, leading to flooding and lacklustre demand for paints in key
markets.     
    
PEER COMPARISON     
                                 Valuation (next    Estimates (next 12      Analysts' sentiment          
                                 12 months)         months)                                              
                      RIC        PE     EV/EBITDA   Revenue     Profit      Mean     No. of   Stock to   Div
                                                    growth (%)  growth (%)  rating*  analyst  price      yield
                                                                                     s        target**   (%)
 Berger Paints India   BRGR.NS   48.39  30.50       8.59        7.22        Sell     19       1.03       0.65
 Asian Paints          ASPN.NS   52.89  36.07       7.53        1.53        Hold     34       1.02       1.13
 Kansai Nerolac        KANE.NS   29.61  18.95       7.60        18.80       Hold     11       0.89       0.88
 Paints                                                                                                  
 Indigo Paints         INDG.NS   46.18  27.22       14.84       12.92       Buy      6        1.05       0.21
 
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
JULY-SEPTEMBER STOCK PERFORMANCE     
     
-- All data from LSEG IBES


($1 = 84.3340 Indian rupees)

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 (Reporting by Aleef Jahan; Editing by Rashmi Aich)
 ((aleefjahan.cs@thomsonreuters.com))