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Ashika Stock
Akzo Nobel (Buy)
CMP: ₹1,343.70
Target: ₹1,460
Akzo Nobel has been in existence for over 100 years and is a significant player in the paints industry. Akzo Nobel manufactures and markets paints, coatings and specialty chemicals. Dulux is its most popular brand in the decorative coatings segment while the performance coatings business provides solutions to many industries and sectors including automotives, consumer electronics, power, aviation, shipping and leisure craft, construction, oil and gas, water and waste water, food and beverages, among others.
India has low per capita consumption of paints (2.6 kg/ annum versus global average of 15 kg/annum). We believe likely revival in economic growth, increase in discretionary spending, increase in corporate capex cycle, increase in urbanisation and changing lifestyles will continue to act as a driving force for the rise in consumption of paints. We recommend a ‘Buy’ for long-term (one year) perspective.
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