Comment on Paint stocks/Sector tumble upto 11% - By Antu Thomas, Senior Research Analyst at Geojit Financial Services
Comment on Paint stocks/Sector tumble upto 11% - By Antu Thomas, Senior Research Analyst at Geojit Financial Services
"Paint stocks witnessed sharp correction in the market as rich valuation and significant rise in oil prices continued to drag the investor’s sentiment. TIO2, a derivative of crude oil is the key input in the manufacturing of paints. A surge in price will increase the cost of production and impact the company’s gross margins. Paint Company’s already taken 18% to 20% price hike in 9MFY22 to mitigate the risk of higher input prices. We expect the raw material inflationary trend to continue; albeit the rate of increase is expected to be moderate in Q4, to support the demand"
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