Asian Paints and Berger Paints are the backbone of the Indian paint industry. They both secure the top 2 spots in the Indian paint market. Asian Paints and Berger Paints will disclose quarterly results in October along with various other companies. While some predictions are already being made about their Q2 results. According to analyst Abneesh Roy, the second-quarter results of Asian Paints and Berger Paints may be weak. However, both companies will continue to dominate the Indian paint market for the next five years. Let’s know more about the company’s quarter results expectations below.
Asian Paints And Berger Paints Expected To Report Weak Q2, But Will Remain Market Leader Over Next Five Years
Asian Paints and Berger Paints are unlikely to report good Q2 results. However, the good news is that the weaker results will not have much impact on the company’s growth in the long term. There are expectations that the company will successfully maintain its position in the coming five years. Why do expectations and predictions favour the company’s growth despite negative Q2 predictions? There are many reasons behind this including market leadership, brand recognition, and research and development.
How does market leadership help the company stay at the top? Asian Paints is the top 1 manufacturer in India. While Berger Paints is the top 2 manufacturer in India. Thus, any company will face a lot of challenges to reach their level and compete with them. Even though many new competitors came, people always like their paints and trust the quality. Both Asian Paints and Berger Paints have a well-established network with multiple manufacturing sites. The industry went through a lot of challenges throughout the period.
From July to September, the industry has gone through different challenges. There were heatwaves and increased heat during July. August saw extreme rainfall followed by other conditions in September. All of these things may have also contributed to the drop in sales. According to the stock market, Asian Paints is up 0.84% today. The share price of Asian Paints is currently Rs 3,088.05 per share. While Berger Paints’ share price is Rs 573.10 per share. It was a good day for both companies.
However, Berger Paints’ weekly performance declined by 7.23% and monthly performance by 3.45%. Asian Paints reported a monthly decline of 5.88 per cent this week, down 4.17 per cent monthly. The festive season is coming with the wedding season. This will increase the demand for the paint industry. Thus, October may have better sales than the previous months.