Paint maker Akzo Nobel India's Q4 Profit Rises
May 15 (Reuters) -Paint maker Akzo Nobel India AKZO.NS reported a near 14% rise in its fourth-quarter profit on Thursday, aided by higher sales of its decorative paints.
The maker of Dulux paints reported a consolidated net profit of 1.09 billion rupees ($13.1 million) for the quarter ended March 31.
Revenue from operations rose 2% to 9.73 billion rupees.
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KEY CONTEXT
Indian paint makers are facing a weak demand environment with consumers resorting to cheaper options, forcing larger players to cut prices to sustain their sales. Akzo Nobel India also flagged moderation in its volumes, but maintained better profit margin aided by favourable product mix across different categories.
Larger rival Asian Paints reported lower revenue in the March quarter and flagged lower demand in the premium segment of products, while Berger Paints BRGR.NS reported a marginal increase in revenue. Kansai Nerolac KANE.NS reported a 2% increase in revenue, while Indigo Paints INDG.NS is yet to report results.
PEER COMPARISON
Valuation (next 12 months) | Estimates (next 12 months) | Analysts' sentiment | |||||||
RIC | PE | EV/EBITDA | Revenue growth (%) | profit growth (%) | Mean rating | # of analysts | Stock to price target | Div yield (%) | |
Akzo Nobel India Ltd | AKZO.NS | 26.38 | 16.50 | 12.56 | 0.89 | HOLD | 1 | 0.86 | 3.52 |
Asian Paints Ltd | ASPN.NS | 50.01 | 34.15 | 7.53 | -1.68 | HOLD | 35 | 0.96 | 1.18 |
Kansai Nerolac Paints Ltd | KANE.NS | 28.79 | 18.25 | 8.77 | 30.23 | HOLD | 11 | 0.85 | 0.91 |
Indigo Paints Ltd | INDG.NS | 36.35 | 21.59 | 18.60 | 17.16 | HOLD | 6 | 0.84 | 0.26 |
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY-MARCH STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 83.4859 Indian rupees
JANUARY-MARCH STOCK PERFORMANCE https://tmsnrt.rs/3V5D3hS
Reporting by Anisha Ajith in Bengaluru; Editing by Varun H K
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