Conversations With Paint Dealers Regarding Price Hikes: ICICI Securities Insights
Buckets of Asian Paints Ltd. paint at a store in Mumbai, India. (Photographer Dhiraj Singh/Bloomberg).

Conversations With Paint Dealers Regarding Price Hikes: ICICI Securities Insights

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Paint companies have initiated material price hikes in a phased manner in Q1 FY22 after nearly three years. Last price hike was in Q1 FY19 (our view).

In-spite of price hikes, there is no material impact on volumes and industry consolidation continue - that's the insight from our conversations with paint dealers.

They told us,

1. While average price hike is 3-5%, price hike in emulsions are higher and lower in enamels.

2. As labour charges have remained largely flat over past two years, the impact for consumers will be low. The material cost to labour ratio is 35:65.

3. The companies operating in informal segment will still generate negligible profits / losses even after price hikes and industry consolidation is likely to continue.

Click on the attachment to read the full report:

ICICI Securities Worms World View Paints.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.