open demat account

With crude oil prices falling, the shares of paint companies have been buzzing on Dalal Street. The price of Brent crude oil fell by more than 15% in the past month. Higher crude oil prices increase input costs for paint companies

Paint companies use crude oil derivatives as raw materials and this accounts for about 40% to 50% of their total expenses. Therefore, when crude oil prices increase drastically, the stock prices of paint companies dip lower and vice-versa. They also affect a company’s profit margins and reduce cash flows since higher crude prices mean a higher cost of raw materials and lower margins.

Espresso in content banner September 2022

Kansai Nerolac Paints Limited

Kansai Nerolac Paints Limited emerged as a top gainer among paint stocks as its shares gained 29.14% in the past month. It was followed by Berger Paints (up 20.72%), Asian Paints Ltd (up 15.75%), and Indigo Paints (Up 8.65%).

ICICI Securities has an accumulate rating on the shares of Kansai Nerolac paints with a target price of ₹550 apiece. The company’s shares are currently trading at ₹ 509.30, and this indicates an upside of 7.99%.

5paisa Basket Order

Berger Paints

IDBI Capital has a buy call on the shares of Berger Paints with a target price of ₹ 820.00. This implies an upside of 17.83 % as compared to its current market price of ₹ 695.90

Asian Paints Limited

ICICI Direct has a buy call on the shares of Asian Paints Limited with a target price of ₹ 3,700. This translates to an upside of 6.11% as compared to its current market price of ₹ 3,487.

FinGrad In-content Banner

Indigo Paints

Motilal Oswal has a buy call on the shares of Indigo Paints with a target price of ₹ 1,800. This suggests an upside oF 17.70% as compared to its current share price of ₹ 1529.20

Written by Simran Bafna


The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

To stay updated with the Latest Stock Market news, download our app here!

For editorial purposes, contact news@tradebrains.in

Start Your Financial Learning Journey

Want to learn Stock Market and other Financial Products? Make sure to check out, FinGrad, the learning initiative by Trade Brains. Click here to Register today to Start your 3-Day FREE Trail. And do not miss out on the Introductory Offer!!