Indian paint stocks have staged a notable recovery in May 2026 after suffering significant losses in the year to date, with Asian Paints and Berger Paints both rising more than 15 percent in the past month. The bounce reflects improved investor sentiment following three rounds of successful price hikes, signs of stabilising competitive dynamics, and hope that crude oil prices have peaked.
Asian Paints shares, despite the recent recovery, remain down approximately 7 percent for the year as a whole, reflecting the significant re-rating the stock has undergone as investors reassessed the company’s competitive moat in light of Birla Opus’s market entry. Berger Paints has lost around 10 percent year to date. Kansai Nerolac and Indigo Paints have also participated in the sector-wide bounce.
Fund managers watching the sector note that the stocks are still not cheap on an absolute valuation basis, trading at significant premiums to the broader market. However, the combination of improving near-term fundamentals and the sector’s strong long-term growth story is attracting renewed interest from growth-oriented investors who had been on the sidelines during the period of maximum competitive uncertainty.
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