The price of crude oil globally has fallen to a 4-year low price currently trading close to $60 per barrel due to the fear of recession and trade wars through tariffs amongst the powerhouses of the world and also supply increases from OPEC+ countries this lowering in prices could be a blessing in disguise for the following companies in India.
Asian Paints
Asian Paints Ltd is India’s largest, Asia’s third largest, and World’s 9th largest paint company. The Company, along with its subsidiaries, has operations in 15 countries globally It manufactures paints for decorative and industrial use Asian Paints is the. The 80+-year-old company has major brands like Asian Paints, Apco, etc under its umbrella.
Crude oil accounts for approximately 30-60% of the total raw material expenses of the company with the falling crude price, the company’s raw material cost reduces, and consequently its profit margins tend to improve.
With a market capital of Rs.2,31,137 crores, the stock has given 4.70 percent returns in the last month also the operating revenue has grown by 5.9 percent QoQ from Rs 8,201.09 crores in Q2 to Rs.8,692.44 crores in Q3 During FY25
Interglobe Aviation
InterGlobe Aviation Limited is one of India’s leading airlines. The principal activities of the Company comprise air transportation which includes passenger and cargo services and providing related allied services including in-flight sales. The Company operates its flights under the IndiGo brand
The aircraft fuel expenses account for roughly 20-40% of an airline’s operating costs therefore, with the fall in fuel prices, this major cost of the company shall also be lowered, improving the profitability and margins
With a market capital of Rs. 2,00,530 crores, the stock has given 11.94 percent returns in the last month also the operating revenue has grown by 5.9 percent QoQ from Rs 17,759 crores in Q2 to Rs.22,992 Crores in Q3 During FY25
Astral Ltd
Astral Poly Technik Limited is a prestigious manufacturer of CPVC and PVC plumbing systems for residential and industrial use. With a commanding market share in the domestic CPVC and PVC pipe industry, the Company has achieved widespread recognition as a leader in the piping segment.
The primary raw material used by Astral a plastic products firm that derives its plastic polymers of crude oil is expected to rise as the fall in crude price eases input cost pressures and expands the margins and profitability.
With a market capital of Rs. 34,014 crores, the stock has given -1.81 percent returns in the last month also the operating revenue has grown by 2.1 percent QoQ from Rs 1,379.2 crores in Q2 to Rs.1,408.8 Crores in Q3 During FY25
MRF Ltd:
Madras Rubber Factory Limited (MRF) is the parent company of the MRF Group, which is India’s largest tyre manufacturer and is ranked among the Top 20 Global Manufacturers. It is also India’s largest Original Equipment Manufacturer (OEM) tyre supplier with an expansive tyre range from two-wheelers to fighter aircraft.
The company uses a substance that is crude waste known as carbon black as a major raw material likely contributes approximately 30 percent of its total Raw materials therefore, a decline has a direct impact on the company’s gross margins
With a market capital of Rs.47,921 crores, the stock has given 9.01 percent returns in the last month also the operating revenue has grown by 1.5 percent QoQ from Rs 6,994.3 crores in Q2 to Rs.7,098.9 Crores in Q3 During FY25
Berger Paints
Berger Paints India Ltd is the second-largest paint company in India and, the 4th Largest paint company in Asia The company is engaged in manufacturing and selling paints, varnishes and enamels for various applications. The company is headquartered in Calcutta and hast has an international presence in 4 countries.
Crude oil derivatives account for approximately 30-50% of the company’s raw materials cost therefore any dip in crude prices bodes well for the paint manufacturer.
With a market capital of Rs. 62,655 crores, the stock has given 7.09 percent returns in the last month also the operating revenue has grown by 7.1 percent QoQ from Rs 2,795.71 crores in Q2 to Rs.2,995.3 Crores in Q3 During FY25.
Written By Likesh babu S
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