Tuesday, July 28, 2015

Paint sector going through over valuation

Paint Sector


We all know the scope of Paint sector in India. Housing, Infra & Auto are booming and so will paint. Valuations of paint sector has increased manifold in last 3 years from 10x to 50 and 60x. The growth expected has come down by little margin and we are expecting a cut in valuation given to companies in paint sector.

The high valuation given to company may come down and technically all 3 major company in paint asian paints, berger & nerolac are showing resistance to increase. It may go down from here for short term.

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