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Below is Quote on Paint stocks 12 April 2022 By Vinod Nair, Head of Research at Geojit Financial Services

"The volume trend is likely to remain at double-digit in Q4FY22 supported by good demand from Tier 1 & 2 cities and pre-buying activity by dealers in expectation of further price hikes. In 9MFY22, paint companies have taken a price hike of ~20% due to inflationary pressure on raw material costs. However, the sustained inflationary trend in input prices may increase the cost of production and impact the company’s gross margins. On the other hand, industrial paint demand is likely to remain muted due to the tepid demand environment in the auto industry.

We remain positive on the sector as the long-term outlook is bright due to the shorter repainting cycle, urbanization, and higher demand from Tier 1&2 cities. Asian paints will be our top pick aided by superior market share and its focus on transforming itself from a Paint Company to a complete home décor company in the long run"

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