For Berger Paints investors, there are a few shades of grey
SummaryIn the near term, if crude oil prices stay high, it could drive up costs and hurt the sector’s profitability outlook. In a competitive landscape where companies are often pushed to give out rebates and discounts, this is bad news.
Berger Paints (India) Ltd is a formidable No.2 in the paints sector. Still, rising competition, especially with Grasim Industries eyeing the No.2 spot in the coming years, means there is a looming threat to Berger’s position.