At close, the Sensex was down 166.26 points or 0.21 percent at 80,543.99, and the Nifty was down 75.35 points or 0.31 percent at 24,574.20. About 1293 shares advanced, 2584 shares declined, and 153 shares unchanged.
The company's revenue from operations was up at Rs 3,200.76 crore in June quarter as against Rs 3,091.01 crore in the corresponding quarter a year ago.
HSBC reaffirmed its buy rating on Asian Paints and Berger Paints, increasing the target price to Rs 2,900 and Rs 640, respectively.
According to the brokerage, the paint industry is expected to see a recovery in revenue growth in FY26, following a decline in FY25.
Despite the entry of new players - Aditya Birla Group’s Birla Opus, JSW Paints and Pidilite Industries - Berger Paints has downplayed any adverse impact, and said it expects to gain market share as well as volumes this fiscal.
The slew of measures come as most paint players reel under the slowdown which started to impact earnings since the fourth quarter of FY24, amid rising crude prices and weakness in demand for the decorative paints segment, especially in the urban market.
In this video, we analyze the latest Q3 earnings and key developments from top stocks to watch. TVS Motor has signed an MoU with the Karnataka Government to invest ₹2,000 crore over the next five years. IRCTC reported a 13.7% rise in net profit with a 10% YoY increase in revenue. Berger Paints saw a 1.6% decline in net profit, though revenue rose by 3.2% YoY. Vodafone Idea posted a 1.7% QoQ revenue increase, a 3.6% rise in EBITDA, and an ARPU boost to ₹173 from ₹166. AstraZeneca Pharma delivered stellar results with a 94.9% jump in net profit and a 44% YoY surge in revenue.
When asked if Berger would be interested if Akzo comes at a fairer price, Roy replied, "We are interested, but only at a reasonable price."
JSW, Indigo Paints are also in the fray to acquire stake in the Dulux maker, the channel reported
Nuvama Institutional Equities said that being a pan-India player, Asian Paints gets affected the most initially by new competition, such as Birla Opus.
ICICI Securities recommended reduce rating on Berger Paints with a target price of Rs 470 in its research report dated November 06, 2024.
Berger Paints flagged extended monsoons, adverse weather and flooding in some key markets as some of the challenges faced in the quarter.
A decline in crude prices benefits paint manufacturers as that reduces their input costs and gives them more leeway to generate higher margins.
While the luxury segment was facing some pressure, construction chemicals and waterproofing segments are growing strong, said MD & CEO Abhijit Roy
The firm blamed recent Lok Sabha elections, weather and slowdown in some key markets for the tepid performance in the June quarter.
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