[ad_1]
Synopsis
It all started post-Covid. A number of large industrial houses announced their entry into the paint industry. From the JSW group to JK Cement, and Grasim to Pidilite, all of them entered a sector which had for long been dominated by the likes of Asian Paints. Now combine this with the fact that the Asian Paints stock, one of the biggest wealth creators on the market, has been underperforming for the last four years. Has the market priced in all the competition? Or is the sector likely to see a longer phase of competition in real business and underperformance on the street? The street has also become extremely sensitive to what happens in the company. The exit of two senior executives saw the stock slip sharply. Will the valuation matrix of the paint sector, and Asian Paints in particular, change for the better? The answer is not in black and white.
What the paint industry has seen in the past four years is not usual. All of a sudden, four strong industrial groups made an entry into the business. What was so special about this industry, which has existed for ages, that major corporates chose to make an entry? That too in a short span of time? Before we answer these questions, a look at the result of their entry. A stock like Asian Paints, which has been a big wealth creator on the market,
- FONT SIZE
AbcSmall
AbcMedium
AbcLarge
Uh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Why ?
Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors
Stock analysis. Market Research. Industry Trends on 4000+ Stocks
Clean experience with
Minimal Ads
Comment & Engage with ET Prime community 
Exclusive invites to Virtual Events with Industry Leaders 
A trusted team of Journalists & Analysts who can best filter signal from noise 
​Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-​
[ad_2]
Source link
