Kansai Nerolac Paints has seen its market capitalisation (mcap) erode by over 5 per cent since May 3 after posting a subpar performance in the fourth quarter of 2023-24.
Weighed down by stiff competition, the company has shed Rs 1,172 crore over the past two weeks in mcap.
India s largest paint maker in terms of mcap, expects double-digit growth in the industrial segment and aims to maintain margins, but its performance in decorative paints could suffer amid competition.
Tata Chemicals witnessed a 4.5% decline in shares, hitting a day s low of Rs 1,050 on BSE. This drop followed the company s announcement of its first quarterly loss in nine years. Kotak Institutional Equities issued a sell rating on the stock, setting a target price of Rs 770, indicating a potential downside of nearly 29%.
Reliance Industries and Viacom18 have partnered with Disney to create a Rs 70,000 crore broadcast network, posing challenges for debt-ridden Zee Entertainment Enterprises. The company faces weakened competitive position, reduced bargaining power, tough competition from digital media, and corporate governance issues. Zee shares have lost 44% of their value this year.
A weaker-than-expected sales performance, concerns about higher competitive intensity in the current year, and earning cuts by some brokerages have weighed on the stock of the country s largest paint maker, Asian Paints.
While the Q3 volume show was slightly below expectations, the company s operational and bottom line beat estimates, benefiting from the falling raw material costs.
The stock ended the day with a decline of over 2 per cent at Rs 3,175 apiece.
While the four largest listed paint companies have seen marginal negative returns, the S&P BSE Fast Moving Consumer Goods (FMCG) and the National Stock Exchange Nifty FMCG indices have delivered a solid 16 per cent return during the same period.
Initially, volume growth and reduced costs bolstered the sector s sentiment, but brokerages have grown cautious due to increased competitive pressures.