The stock had rallied 37 percent from lows touched on March 23, but before that it had fallen 56 percent in previous two months due to turmoil following the spread of novel coronavirus or COVID-19.
Equity Intelligence India Private Limited, the fund management firm owned by Kochi-based investor Porinju Veliyath, has picked up 1.84 percent stake in Shalimar Paints during January-March period of 2020.
Porinju has acquired 10 lakh shares of the company during the quarter, as per the shareholding pattern available on the exchange.
Among others, Delhi-based Assured Fin - Cap Private Limited also bought 6,95,402 shares (representing 1.28 percent of total paid-up equity) of the company during March quarter.
The stock closed at Rs 63.20 on the National Stock Exchange, up 1.94 percent on April 21. It had rallied 37 percent from lows touched on March 23, but before that it had fallen 56 percent in previous two months due to turmoil following the spread of novel coronavirus or COVID-19.
The virus has forced major parts of the world to go for lockdown. In India, the government effected lockdown from March 25 till April 14 and then extended till May 3 given the rising cases.
As a result, the company has been under shutdown mode since March 25, though the government allowed several other companies to open select plants with minimum employees to maintain social distancing rule.
Paint companies are beneficial of the current sharp fall in oil prices but may not be for longer term, brokerages say.
"Low prices of crude and related inputs will provide support to margins, however margins are likely to even out once the global demand recovery sets in and COVID-19 related fear subsides," said Prabhudas Lilladher in its note on April 13.Its interaction with various stakeholders and channel partners suggested slow recovery on account of 1) loss of summer painting
/waterproofing season in April/May 2) consumer reluctance to undertake interior work by letting in outsiders till risk associated COVID-19 gets over fully and 3) labour availability as migrant labour is unlikely to return in a hurry, the brokerage added.
It believes that demand recovery will mostly coincide with festival season, provided that the economic disruption does not damage purchasing power of consumers, more so among the entry level of middle class.As a result of the fall in demand and huge supply due to COVID-19 crisis, International benchmark Brent crude futures corrected more than 70 percent in last three-month period, while WTI crude futures plunged below zero level on April 20, but later it recovered sharply to trade around $15 a barrel.