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Investing in the Indian paint sector can be a compelling opportunity as the industry witnesses robust growth driven by infrastructure development, urbanisation, and increasing disposable incomes.
In its June 2023 report, Akzo Nobel India, a prominent paint manufacturer, projected that India’s paints and coatings industry will grow to US$12.22 billion (₹1 lakh crore) over the next five years. The company’s annual report highlighted that the industry’s value in June 2023 stands at approximately US$7.57 billion (₹62,000 crore).
Fueled by a booming real estate sector and rising disposable incomes, the demand for paints is expected to stay vibrant. However, choosing the right paint stock can be overwhelming with many companies in the market. In this article, check the best paint sector stocks in India for 2024 based on the 5-yr CAGR.
| Name | Market Cap (₹ in crore) | Close Price (₹) | PE Ratio | 5Y CAGR (%) |
| Asian Paints Ltd | 2,75,643.17 | 2,905.8 | 50.48 | 15.31 |
| Berger Paints India Ltd | 56,855.87 | 499 | 48.69 | 12.62 |
| Akzo Nobel India Ltd | 12,724.87 | 2,798.80 | 29.9 | 9.25 |
| Kansai Nerolac Paints Ltd | 22,088.97 | 283.9 | 18.63 | -1.67 |
| Sirca Paints India Ltd | 1,792.80 | 331.45 | 34.86 | – |
| Indigo Paints Ltd | 6,459.31 | 1,367.95 | 43.85 | – |
Note: The best paint stocks in India listed here are as of June 13, 2024, and are sorted as the 5-yr CAGR.
A key player in the paint industry in India, Asian Paints has enjoyed the top slot in the list of best paint companies in India. One of the largest paint companies, with operations that began in 1942, it adopts the latest technologies in the paint industry to stay ahead of the competition.
The company reported a net profit margin of 15.04% and a Return on Equity (ROE) of 30.44%.
With its headquarters in Kolkata, Berger Paints is a leader in India’s dynamic paint industry. The company operates more than 10 plants across the country and shows robust growth potential.
Berger Paints reported a net profit margin of 10.33% and an ROE of 20.37%.
One of the leaders in the Indian paint Industry, the company has had a strong presence in the Indian market for more than 50 years. Since the company acquired the holding company of ICI India Limited, it has proved to be a stable contender in the Indian paint industry.
The company reported a net profit margin of 10.77% and an ROE of 32.3%.
Previously just called Nerolac Paints, this is one of the oldest and most reputed paint companies in India, beginning its operations as far back as the 1920s.
The company reported a net profit margin of 13.86% and an ROE of 23.34%.
Sirca Paints India Ltd manufactures, sells, and exports wood coatings and other decorative paints under the brand Sirca.
The company reported a net profit margin of 16.17% and an ROE of 18.79%.
Besides the leading paint companies mentioned, there are some more names to take note of, such as JSW Paints and Grasim Industries. Some of these have arisen from flagship companies in other sectors, while some are pure paint businesses with a long-standing reputation.
Given their ongoing growth, choosing any company in the paint industry for investment is likely a solid choice in the long run. Use Angel One to open a free demat account and research paint stocks in India in depth.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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