What is the status of the Birla Opus disruption in the paints market?

The Birla Opus disruption in the paints market has not materialized, as the product prices and dealer margins are only marginally higher than the legacy players, and the growth slowdown was more a function of weak consumption across categories.

How has Titan's studded jewellery performed?

Titan's studded jewellery has grown at a CAGR of 19% over the past 12 quarters, and there is very little evidence that lab-grown diamonds are substituting Titan's offerings.

What is the outlook for Britannia after the exit of its CEO Varun Berry?

Analysts remain positive on Britannia, as the company is a key beneficiary of the GST rate cut, with 65% of its portfolio priced between ₹5-₹10, and the new leadership is expected to sustain the momentum.

Home / Business and Economy / Paints Disruption Fades, Analysts Upgrade Asian Paints and Berger

Paints Disruption Fades, Analysts Upgrade Asian Paints and Berger

17 Nov

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Summary

Nomura analyst upgrades Asian Paints and Berger Paints
New entrant Birla Opus fails to disrupt paints market as feared
Titan's studded jewellery sees strong growth, lab-grown diamonds have little impact

Paints Disruption Fades, Analysts Upgrade Asian Paints and Berger

In a recent report, Nomura's India Consumer Equity Research Analyst Mihir Shah has provided an insightful analysis of the major shifts shaping India's consumption landscape. Notably, Shah has upgraded both Asian Paints and Berger Paints, a move that the market considers a bold contrarian call.

The primary reason behind Shah's upgrade is the lack of disruption from Birla Opus, a new entrant backed by a ₹10,000-crore investment. Contrary to initial fears, Shah notes that the product prices and dealer margins of Birla Opus are only marginally higher than the legacy players. Even during the aggressive launch phase, the margins for Asian Paints and Berger dipped by only 100-200 basis points, while the growth slowdown was more a function of weak consumption across categories.