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Akzo Nobel India reported a 4.3% rise in its first-quarter profit on Thursday, as demand for its paint products across different verticals picked up in June ahead of the monsoon.

The maker of Dulux Paints said its consolidated net profit rose to 1.15 billion rupees ($13.74 million) in the quarter ended June 30, from 1.1 billion rupees a year earlier.

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KEY CONTEXT

Indian paint makers have benefited from rising real estate demand and automotive sales. However, price cuts undertaken to retain customers due to stiff competition have weighed on their sales.

Akzo Nobel India said it recorded double-digit volume growth across different verticals in the business-to-business segment in the quarter, without specifying details.

However, the company said it is undertaking pricing actions "without losing competitiveness" on account of rising raw material costs in second half of the fiscal year.

Larger peer Kansai Nerolac reported a higher adjusted profit for the June quarter and said demand remained strong for its automotive coatings.

PEER COMPARISON

Valuation (next 12 Estimates (next 12 Analysts' sentiment

months) months)

RIC PE EV/EBITDA Revenue Profit Mean # of Stock to Div

growth % growth % rating analysts price yield

* target** (%)

Akzo Nobel India 29.72 19.40 - - Hold 2 1.12 2.61

Berger Paints 50.16 31.49 8.16 4.56 Sell 20 1.10 0.65

India

Kansai Nerolac 29.80 18.61 8.78 25.46 Hold 11 0.87 0.91

Paints

Asian Paints 54.36 37.40 6.40 -2.59 Hold 34 1.03 1.13

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 83.7200 Indian rupees