Sell AkzoNobel India Ltd; target of Rs 3440: Asit C Mehta

sell

Asit C Mehta report on AkzoNobel India Ltd

In October 2024, the parent company announced a strategic review of the decorative paints business in India, to explore various strategic options ranging from partnerships or joint ventures through to mergers or divestments. For any third-party which may be interested to buy the business, an important aspect would be access to the IP related to it. Hence, the potential transaction #2 announced now, seems to be a precursor to the divestment of the decorative paints business of Akzo Nobel India.

Outlook

Retaining our valuation multiple at 33.0x and Sep-26E EPS of Rs 104.3, we arrive at a price target of Rs 3,440 (unchanged). This is at par with the CMP. However, we retain our ‘Sell’ rating on the shares of Akzo Nobel India and will review our estimates and rating post the Q3FY25E results.

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Akzo - Nobel - India - 07012025 - asit