Review

AKZO NOBEL INDIA LTD. 

Ticker : 500710 
FV : Rs 10 
52-Week H/L : Rs 2,515.00/1,730.00

We had previously recommended Akzo Nobel in volume 37, issue no. 11, dated January 4, 2021, when the scrip was trading at Rs 2,410.50 and was recommended based on the strong demand growth in the paints sector to positively benefit the company. On the consolidated quarterly front, the company reported a 6.55 per cent growth in net sales to Rs 774.64 crore in Q3FY21 compared to Rs 727.03 crore in Q3FY20. The operating profit rose by 14.21 per cent to Rs 140.75 crore in Q3FY21 from Rs 123.24 crore posted in Q3FY20. Akzo Nobel gained a net profit of Rs 87.37 crore in Q3FY21, which is an increase of 13.48 per cent compared to that of Rs 76.99 crore reported for Q3FY20. Considering the growth in the company’s financial performance for the recent quarter, further demand growth for its products will surely lead to improving margins. Hence, we recommend HOLD.