Paint companies face profitability challenges amidst high competition
Representative Image MUMBAI: Investor woes in shares of paints companies may be far from over as the hyper competition in the sector and tepid demand are expected to continue squeezing profitability in the sector. With valuations remaining elevated despite the recent underperformance in the shares, money managers and analysts are less enthusiastic about their prospects in the foreseeable future. So far in 2025, Asian Paints is down 4.2% and Kansai Nerolac has fallen 4.5%. Berger Paints bucked the trend, rising 24%. In comparison, the Nifty 50 is up 6%. Morgan Stanley said this ‘de-rating’ is not yet done. “While there…