Asian Paints, Nerolac, Indigo Paints In The Crosshairs: ICICI Securities Says Sales Will Remain Low For The Next 3-4 Months – Explained!

National brokerage agency ICICI Securities has mentioned that main gross sales of paints, based on paint sellers, have been materially affected (rejected for some sellers) in October and November final 12 months. The report mentioned there was a rise in commerce shares within the base quarter as a result of 22 p.c worth enhance. However, shopper shopping for has been largely flat.

Traders, based on the report, count on the market to stay subdued for the subsequent 3-4 months and count on a restoration solely within the first quarter of FY24. The report cites 4 causes for the influence:

1. There is a resurgence of smaller/disorganized gamers. They are prone to regain some misplaced market shares.

2. While paint inflation has now cooled, job inflation stays excessive and is prone to end in larger total paint expenses.

3. Due to elevated spending on journey/tourism, cars, weddings, and festivals, portray spending has moderated barely.

4. Previously, customers used to pay individually for portray and waterproofing expenses, however now painters provide each companies and it interprets to some financial savings for customers.

ICICI Securities has tagged Akzo Nobel as Buy and says it’s the solely paint materials in its hedge that’s most well-liked as a commerce decide.

For Asian Paints, Kansai Nerolac and Indigo Paints, the brokerage has tagged a Hold ranking and has given Berger Paints a Reduce ranking.

Meanwhile, brokerage agency Macquarie in a report mentioned it’s bullish on Asian paints. It has maintained an higher ranking and revised the value goal to Rs 3,750 from Rs 3,700.

At Berger Paints, it has lower the goal worth to Rs 500 from Rs 525 whereas sustaining the underperform ranking.

Individually on NSE at present, Asian Paints traded at Rs 3,034.85 per share, Berger Paints at Rs 577.90, Kansai Nerolac at Rs 430.90, Akzo Nobel at Rs 2,241.10 and Indigo at Rs 1,307.50 every at round 1pm.

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[Disclaimer: This story was automatically generated by a computer program and was not created or edited by Journalpur Staff. Publisher: Journalpur.com]

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