Three stocks to watch as India slaps anti-dumping duty on liquid epoxy resins
Atul Ltd may gain immediately from import curbs, while paint makers’ benefits hinge on how domestic prices move
Earlier this week, India reportedly imposed a five-year anti-dumping duty on liquid epoxy resins. The measure targets imports from South Korea, Taiwan, Saudi Arabia, and China, and is aimed at protecting domestic manufacturers from the impact of low-cost imports.
Following an investigation into unfair pricing practices, the government has moved to stabilize prices and ensure fair competition for essential manufacturing inputs. Here are three companies that may benefit from the decision.
Atul Ltd
Atul is a large integrated chemical company that manufactures around 900 products and 400 formulations, serving about 4,000 customers across 30 industries. Its product portfolio includes organic intermediates, polymers and resins (such as epoxy phenol novolac and resorcinol formaldehyde), dyes and pigments (including vat dyes and sulphur black), agrochemicals, and pharmaceutical APIs.
The imposition of the five-year anti-dumping duty is likely to benefit Atul Ltd, which manufactures epoxy resins. The stock rose 3.5% intraday on 18 November, the day the government announced the duty.
In Q2FY26, Atul Ltd reported sales of ₹15,519 million, up from ₹13,928 million in the year-ago period, while net profit rose to ₹1,812 million from ₹1,364 million during the period.
Going forward, the company plans to debottleneck and expand existing products and product groups, grow downstream and upstream products, and introduce new retail products and formulations. It is currently executing RoI projects worth ₹2,430 million and non-RoI projects worth ₹2,060 million (warehousing and other infrastructure).
Overall, Atul Ltd’s prospects remain positive given its strong market leadership, ongoing expansions, and innovation-driven growth strategy in specialty chemicals.
Asian Paints
Asian Paints is India’s largest paint manufacturer. Liquid epoxy resins—extensively used in epoxy paints and coatings due to their adhesive strength, chemical resistance, durability, and mechanical properties—are a key input for the sector.
The company may benefit if domestic manufacturers reduce epoxy resin prices to levels below imported costs due to the anti-dumping duty. However, this remains an assumption, and it is unclear how much of Asian Paints’ requirements are currently sourced from imports or how pricing dynamics will evolve.
In Q2FY26, the company reported a 6% year-on-year (YoY) increase in consolidated revenue to ₹85,313 million, while net profit rose 43% to ₹10,182 million from ₹6,936.6 million a year ago.
A key growth driver was the decorative paints segment, which delivered 10.9% volume growth and 6% value growth despite the monsoon. Early festive demand, strong rural and urban sales, and smart regional marketing strategies supported performance. The festive and wedding season, low inflation, and GST changes may further bolster demand.
Berger Paints (India)
Berger Paints offers a wide range of products, including decorative paints, industrial coatings, automotive paints, marine coatings, powder coatings, and specialty products such as heat-resistant and textured coatings.
Like Asian Paints, Berger consumes epoxy resins in paint production. It, too, would benefit only if domestic prices fall below imported prices as a result of the duty, an outcome that is not yet certain.
In Q2FY26, revenues grew to ₹28,275 million from ₹27,746 million YoY, while net profit fell to ₹1,956 million from ₹2,610 million.
Looking ahead, the company is focusing on rural and smaller urban markets, which are seeing strong demand supported by rising agricultural incomes, government infrastructure spending, and rural development programmes. While challenges remain, including competition and raw material price volatility, Berger’s diversified portfolio and strong market position support sustained growth prospects.
Conclusion
Domestic manufacturers of liquid epoxy resins stand to gain from the anti-dumping duty through enhanced market protection and more competitive pricing, which could put them on a growth trajectory in the near to medium term.
For end users such as paint companies, however, the benefit will depend on how domestic prices evolve and how other demand factors play out. Investors should assess company fundamentals, corporate governance, and valuations carefully as part of their due diligence before making investment decisions.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated fromEquitymaster.com
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