Fresh coat of confidence for legacy paintmakers

Birla Opus’ early gloss fades, giving seasoned players room to repaint mkt as disruption fears dry out and demand colours back in

- RAM PRASAD SAHU

Shares of the country’s largest paintmaker, Asian Paints, rose 4 percent last week. Brokerages are turning optimistic about the market leader and its peers, Berger Paints India and Kansai Nerolac Paints. Analysts say the feared disruption from new entrants hasn't played out.

They expect legacy players to regain ground once demand begins to pick up from the third quarter (October-December/Q3) of 2025-26 (FY26). That could also help reverse their weak run over the past 18 months. Asian Paints and Nerolac are down 8 per cent and 12 per cent, respectively, over the past year, while Berger has stayed slightly positive with a 2.86 per cent gain. The slide in share prices and valuation cuts stemmed from worries about new competition and subdued demand since 2024-25.

In a note dated November 6, Nomura upgraded Asian Paints and Berger to a ‘buy’. Analysts Mihir P Shah and Riya Patni said that despite rivals investing 10,000 crore in expansion, neither margins nor sales were hit, and competitive pressure should ease from here.

Birla Opus, though it expanded faster than any other paint company since its launch and captured a midto high-single-digit market share, has seen its rapid growth cool in recent months.