Rising competition, valuations of paint majors on palette of worry

https://www.business-standard.com/markets/news/rising-competition-valuations-of-paint-majors-on-street-s-palette-of-worry-123081300321_1.html

Excerpts

In terms of profitability, all paint companies experienced an expansion in margins, attributed to lower raw material costs and an improved product mix. The companies witnessed a rise of 400-540 basis points (bps) in gross profit margins, and operating profit margins expanded by 300-500 bps.

Although some brokerages maintain a ‘neutral’ or ‘reduce’ rating on Asian Paints, Nuvama Research holds a positive outlook. Despite Grasim’s entry into the market seven months later, analysts at the brokerage remain optimistic about Asian Paints due to its formidable entry barriers and best-in-class research and development efforts.