Paint maker Akzo Nobel India reports Q1 profit rise on higher demand

JSW Dulux

01/08/2024 07:51

BENGALURU, Aug 1 (Reuters) - Akzo Nobel India  AKZO.NS  reported a 4.3% rise in its first-quarter profit on
Thursday, as demand for its paint products across different verticals picked up in June ahead of the monsoon. 
    The maker of Dulux Paints said its consolidated net profit rose to 1.15 billion rupees ($13.74 million) in the
quarter ended June 30, from 1.1 billion rupees a year earlier.  
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    KEY CONTEXT
    Indian paint makers have benefited from rising real estate demand and automotive sales. However, price cuts
undertaken to retain customers due to stiff competition have weighed on their sales. 
    Akzo Nobel India said it recorded double-digit volume growth across different verticals in the
business-to-business segment in the quarter, without specifying details.
    However, the company said it is undertaking pricing actions "without losing competitiveness" on account of rising
raw material costs in second half of the fiscal year.
    Larger peer Kansai Nerolac  KANE.NS  reported a higher adjusted profit for the June quarter and said demand
remained strong for its automotive coatings. 
    
    PEER COMPARISON
    
    
                                  Valuation (next 12    Estimates (next 12         Analysts' sentiment
                                       months)               months)        
                     RIC         PE          EV/EBITDA  Revenue   Profit    Mean    # of      Stock to       Div
                                                        growth %  growth %  rating  analysts  price          yield
                                                                            *                 target**       (%)
 Akzo Nobel India     AKZO.NS         29.72      19.40     -         -      Hold           2      1.12           2.61
 Berger Paints        BRGR.NS         50.16      31.49    8.16      4.56    Sell          20      1.10           0.65
 India                                                                                                       
 Kansai Nerolac       KANE.NS         29.80      18.61    8.78     25.46    Hold          11      0.87           0.91
 Paints                                                                                                      
 Asian Paints         ASPN.NS         54.36      37.40    6.40     -2.59    Hold          34      1.03           1.13
 
* 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
        
    APRIL-JUNE STOCK PERFORMANCE
    
    
 -- All data from LSEG
-- $1 = 83.7200 Indian rupees
    
     

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 (Reporting by Anisha Ajith in Bengaluru; Editing by Sherry Jacob-Phillips and Janane Venkatraman)
 ((anisha.ajith@thomsonreuters.com;))