The Indian paint sector is experiencing robust growth, with the market valued at over ₹1 lakh crore (USD 12 billion) in 2025 and projected to reach ₹1.3 trillion by year-end, expanding at a CAGR of 9–15%. India is now the world’s fastest-growing paint market, led by Asian Paints with a dominant 59% market share.
The prominent brokerage firm ICICI Securities upgraded a few paint stocks, reversing its negative stance on the sector after nearly four years. The upgrade reflects improving industry demand after two sluggish years. Notably, Birla Opus has already utilized 95% of its allocated budget in its aggressive paints venture, signaling intense initial investment. Meanwhile, operating margins for top players are at the lower end of their guidance, indicating limited downside risk and potential for margin recovery as demand strengthens.
Moreover, Valuation multiples for Asian Paints and Berger Paints are trading one standard deviation below historical averages, enhancing their risk-reward appeal. Simultaneously, competition for the third spot in the paint industry is intensifying, with Birla Opus and the AkzoNobel-JSW Paints alliance actively working to expand their market share.
In a recent interaction with CNBC-TV18, Berger Paints MD and CEO Abhijit Roy confirmed that Berger was indeed in the fray for Akzo Nobel India, but let go of the deal due to valuation concerns.
Paint stocks, heavily impacted by crude-linked inputs, fell 10–35% over the past year due to geopolitical tensions and rising oil prices. However, easing tensions have pushed crude back below $70 per barrel, improving raw material costs and supporting margins. This correction has also brought valuations down from peak levels, enhancing attractiveness.
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Asian Paints
With a market capitalization of Rs 2.26 lakh crore, the shares were trading at Rs 2,360.90 per share, increasing around 0.83 percent as compared to the previous closing price.
ICICI Securities, one of the well-known brokerages in India, gave a ‘Buy’ rating on the paint stock with a target price of Rs 2,700 apiece, indicating a potential upside of 15 percent from the Tuesday price of Rs 2,360.90 per share.
Berger Paints
With a market capitalization of Rs 68,776.13 crore, the shares were trading at Rs 589.90 per share, decreasing around 0.53 percent as compared to the previous closing price.
ICICI Securities, one of the well-known brokerages in India, gave a ‘Buy’ rating on the paint stock with a target price of Rs 650 apiece, indicating a potential upside of 10 percent from the Tuesday price of Rs 590.00 per share.
Written by Abhishek Singh
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