Analysis of Indian Paint Stocks’ Performance During March-April 2024

Right after the election commission declared election dates, the Indian stock market showed its pre-election signs of discomfort, with the Nifty 50 index falling more than 3% from March 7 to March 19, but with the same speed, the market bounced back, and from March 20 to April 4, the same index gained 3%. While the market was showing mixed reactions, paint industry-related stocks did the same.

According to the Ticker, as of now, there are eight prominent paint industry-related stocks: Asian Paints, Shalimar Paints, Ducol Organic & Colour, Kansai Nerolac Paint, Akzo Nobel India, Retina Paints, Indigo Paints, and Berger Paints India.

With the highest market cap, Asian paints come first, with more than Rs 2,79,922 crore of market capital. Not only this, but Asian paints also control a major market share in the paint industry, followed by Berger Paints and Kansai Nerolac Paint, respectively.

Overall, paint-related stocks in the market performed well. Out of 8 paint stocks, only 4 showed a negative return, and the other 4 showed a positive return during March and April. Shalimar Paints showed the highest fall and a fall of 8% to the investors, and Ducol Organics & Colours placed itself among the top gainers in the paint industry market, giving a return of more than 6% return in a month. 

Asian paint, on the other hand, gained around 4% in a month; Retina Paints also gained around 5% during the same period. Akzo Nobel India was neutral and rarely gave any return; Indigo Paints and Berger Paints India were among the losers in the market; Indigo Paints gave around -8% return till the 28th of March and gained around 10% within a week; Berger Paints India was not that lucky, and it gave around -3% return to the investors.

As the economy is growing and the government is investing in infrastructure, it’s sure that paint stocks will also grow with the growing economy. Every building eventually needs colour. The mixed reaction of stocks shows the positive side of the market, where only deserving stocks were gaining and not overpriced stocks were correcting their price by falling.