Akzo Nobel India Q2 Results Review - Fourth Quarter Of Market Share Gains: ICICI Securities

ICICI Securities Report

Akzo Nobel India Ltd.'s (revenues up 25%) outperformed peers - Asian Paints Ltd. (up 19.4%), Kansai Nerolac Paints Ltd. (up 19.2%) and Indigo Paints Ltd. (up 23.7%).

It was broad-based revenue growth (decoratives, industrials, automotive), in our opinion. What's pleasing for longstanding believers like us is the sustained market share gains despite inflationary pressures and prolonged rains (it has high salience in exterior paints).

Akzo Nobel India's marketing efforts provides growth visibility -

1. relaunch of Velvet Touch (after attempting Ambiance from global portfolio),

2. early success in waterproofing,

3. economy emulsions.

Another growth driver is it's expanding distribution touch points (600-800 outlets per quarter / ~15% gross addition per annum). We reckon it has significantly upped brand spends (other expenditure up 27%).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.