Is This Midcap Stock Set to Become the Next Asian Paints? Don't Miss Out on Its Attractive Dividend Yield!
This stock is now emerging as a strong competitor, with robust financial performance, product innovation and higher dividends.
The Indian paint industry has always been a lucrative sector for investors, thanks to the steady demand for paints and coatings in the country. Asian Paints has been one of the most sought-after stocks in this space, with a history of generating multibagger returns for its investors. However, in recent times, the stock has lost its sheen, with a YTD decline of over 10 per cent.
But, interestingly, there's another player in the Indian paint industry that has been outperforming Asian Paints - Akzo Nobel India. The company, which is a leading manufacturer of paints and coatings and maker of Dulux Paints, has seen its stock price surge by nearly 6 per cent YTD.
Now let’s check the stock price performance over a period of time of Asian Paints and Akzo Nobel India.
|
Period
|
Asian Paints in %
|
Akzo Nobel in %
|
|
1-Day
|
-0.69
|
0.61
|
|
1-Month
|
-2.07
|
9.03
|
|
1-Year
|
-8.45
|
22.37
|
|
YTD
|
-10
|
5.92
|
Akzo Nobel India's performance in Q3 and 9M FY23 has been outstanding, with the company reporting its’ highest-ever revenue, EBIT and PAT. The revenue from operations stood at Rs 986.8 crore, up by 8 per cent YoY, while EBIT from operations stood at Rs 121.8 crore, up by 12 per cent YoY. The PAT grew by 16 per cent YoY to Rs 97.4 crore, driven by the robust revenue growth of 25 per cent, which has led to market share gains across businesses for the company.
One of the key factors behind Akzo Nobel India's success is its product innovation. The company recently launched the upgraded ultra-premium offering in its trusted Weathershield range of exterior paints - the new Dulux Weathershield Powerflexx. Enhanced with the breakthrough Triple Defence Technology, this 'Ghar Ka Champion' now provides an even longer-lasting 12-year protection to home exteriors against all-weather conditions.
Finally, when it comes to dividends, Akzo Nobel India is a clear winner, with a dividend yield of 2.56 per cent, compared to Asian Paints' dividend yield of 0.72 per cent. In the past 12 months, Akzo Nobel India has declared an equity dividend amounting to Rs 60 per share, while Asian Paints has declared an equity dividend amounting to Rs 19.90 per share.
In conclusion, while Asian Paints may have been the darling of the Indian paint industry for a long time, Akzo Nobel India is now emerging as a strong competitor, with robust financial performance, product innovation and higher dividends. It will be interesting to see how these two players perform in the coming years and as an investor, which one would you like to bet on? Let us know in the comment section below.