Asian Paints, Kansai Nerolac, Berger Paints slump up to 27% YTD. Is it time to buy paints stocks ahead of Diwali?
AI Summary
The ongoing pressure on paint stocks, particularly with Asian Paints and Kansai Nerolac seeing significant declines, highlights the challenges facing the sector as it grapples with high inventory levels and rising input costs. While the upcoming festive season could provide a temporary boost in demand, investors should remain cautious, as the competitive landscape and margin pressures from crude oil prices may limit recovery potential. Monitoring dealer inventory and pricing strategies will be crucial for assessing the sector's trajectory in the coming months.
Paint stocks have remained under pressure this year, with Asian Paints down 15.5% year-to-date (YTD), Kansai Nerolac falling 25.01%, and Berger Paints India declining 14.34%. However, with the festive season approaching, investors are watching for signs of a recovery in demand and margins.
According to Elara Securities, demand for paints is likely to remain muted in Q2 FY27 as dealers work through excess inventory accumulated in Q1 amid softer secondary offtake. August was particularly weak, although September saw some improvement as dealers began stocking premium paints ahead of the festive season.
Original Article
Published on Livemint
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This is a market news update from Livemint, published on 05 October 2026.
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