IMO, it would be difficult for the old paint entrants to enjoy the same premium that they used to command. Paint industry is getting hugely crowded and with new players entering the market such as Grasim, Astral, Pidilite, and JK Cement, old entrant’s volume, pricing power, margins would be under pressure and so is their stock price. Just imagine, Grasim eyeing 10,000 crores in next 3 years which is 28% revenues of Asian paints. I would avoid buying these names due to these headwinds. Take informed decisions !!
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