Volatility in crude and currency exchange rates remain a concern, CLSA said
Kansai Nerolac Paints shares declined over a percent intraday on May 8 after global brokerage house CLSA maintained sell call on the stock.
It expects stock price to fall 10 percent to Rs 385 amid volatility in crude oil prices.
The stock was quoting at Rs 425.80, down 0.99 percent on the BSE, at 1050 hours IST.
The brokerage said the industrial segment is expected to remain under pressure though there is a positive outlook for its decorative business.
Company is confident of delivering double-digit volume growth in FY20 in decorative business, it added.
Volatility in crude and currency exchange rates remain a concern, CLSA said.
Oil prices rallied 50 percent from its December 2018 low of around $50 a barrel to recent high of around $75 a barrel. It is a key part of operating expenses of paint makers, so any rise or fall in crude oil prices will have a direct impact on their earnings.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.