Paints/Varnish Stocks

Indian paint industry’s beginning can be traced back to the first factory set up in Howrah, Kolkatta, in 1902 by Shalimar Paint Colour and Varnish Company. There are mainly 4 large paint companies with a combined market share of ~70% – Asian Paints, Kansai Nerolac, Berger, and Akzo Nobel. The remaining 30% is made up of medium and small players, totalling ~3000 manufacturers.

The Indian paint industry has achieved remarkable advancements marked by substantial growth and progress over the past few years, The industry has recorded significant expansion in terms of market size and emerged as one of the leading paint markets worldwide. The industry has witnessed a double-digit Compound Annual Growth Rate (CAGR) in recent years on the back of various factors, including urbanisation, growing disposable income, and increased construction and infrastructure projects.

Investing in the paint sector stocks requires careful consideration and analysis of various factors to make informed decisions. Here are some key things to consider before investing in the paint sector:

• Industry Overview: Understand the overall dynamics of the paint sector, including market size, growth trends, and key players. Analyse the competitive landscape to identify market leaders and their market share.
• Economic Conditions: Evaluate the economic conditions and their impact on the construction and real estate industries, as they significantly influence the demand for paint products.
• Company Performance: Research and analyse the financial performance of the paint companies you are interested in. Look at revenue growth, profit margins, return on equity, and debt levels.
• Product Portfolio: Assess the diversity and quality of the company’s product portfolio. A company with a broad range of high-quality products may be better positioned to withstand market fluctuations.
• Raw Material Costs: Paint production is influenced by the prices of raw materials such as pigments, resins, and solvents. Monitor the trends in raw material costs and the company’s ability to manage and pass on cost increases to consumers.
• Global Expansion: If the company operates globally, assess its international exposure and potential risks related to currency exchange rates, geopolitical events, and varying market conditions.
• Consumer Preferences: Understand changing consumer preferences and trends in the paint industry, such as a growing demand for eco-friendly and sustainable products.

To invest in sector stocks via Angel One, follow these steps:

• Log in to your Angel One account.
• Click on the search icon and look for your desired paint sector stock.
• Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
• To complete your transaction, click on the ‘Buy’ button.

You can track the status of the purchase from the ‘Positions’ section in the ‘Orders’ module. Once the stock is delivered, you can track its gains and losses from your ‘Portfolio.’