Paint Prices Rise: Asian Paints & Berger See Stock Gains

11 Jul 2024 , 10:02 AM

The biggest paint manufacturer in India, Asian Paints, is said to have raised prices by up to 1% across the board, propelling its shares to the top of the gainers’ pack on the Nifty 50 index at a choppy period for the market.

According to news reports, the paint firm raised prices by 0.7–1% across the board.

In an interview, Berger Paints affirmed that company has increased prices by 0.7–1% starting on July 22.

Market observers may keep a careful eye on whether other businesses, like Akzo Nobel and Kansai Nerolac, decide to raise their prices as well.

Asian Paints indicated that, due in large part to retail inflation in rural areas, consumption demand had moderated in FY24. The business anticipates that a favorable monsoon and increased rural earnings will help Q1FY25 demand and maybe increase discretionary expenditure.

Following its April results call, Asian Paints announced that going forward, its approach will be on building brand equity rather than responding to pressure on prices. Such pressure is typically unsustainable since rivals could always try to undercut. The management had stated in May, “Instead, we aim to invest in the brand’s long-term growth.”

Asian Paints saw a 1.3% increase in total net profit from ₹1258.41 Crore a year earlier to ₹1,275.3 Crore for the March quarter. According to a regulatory filing, the company’s total sales was ₹8,730.76 Crore, which was 0.64% less than ₹8,787.34 Crore the previous year.

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