India's Grasim could snatch market share from paint mainstays - Jefferies

JSW Dulux

22/02/2024 05:21

** Commencement of Grasim's  GRAS.NS  paint business and
co's "massive" paint capacity addition could challenge Indian
paint oligopoly and reflect in market share - Jefferies
    ** Magnitude of GRAS investment will likely push the entrant
to adopt an aggressive stance, including steps like higher
discounts and promotions - Jefferies
    ** Brokerage adds, aggressive moves by GRAS could impact
industry's profitability in medium term
    ** Expects market leader Asian Paints'  ASPN.NS  rev
slowdown irrespective of GRAS foray as product mix deterioration
would impact ASPN's vol growth
    ** Ad spends should also see an increase as competition
picks up - Jefferies
    ** Shares of paint-makers ASPN, Kansai Nerolac  KANE.NS ,
Akzo Nobel India  AKZO.NS , Indigo Paints  INDG.NS , Berger
Paints  BRGR.NS  down between 0.2% and 2.2%, GRAS down 2.3%
    ** Analysts' avg rating on GRAS is "buy", paint cos at
"hold"; BRGR only sell-rated stock among major paint cos - LSEG
data

 (Reporting by Varun Vyas in Bengaluru)
 ((varunvyas.hebbalalu@thomsonreuters.com))