Paint stocks tumble up to 48% from their peaks. Is the worst over?

Paint stocks have corrected sharply from their peaks, with Shalimar Paints down around 48 percent and other players like Indigo Paints, Kansai Nerolac, and JSW Paints correcting roughly 20 percent, while Asian Paints has slipped about 10 percent. The sector is navigating headwinds from a 14–16 percent price hike between March and June driven by crude-linked raw material costs, rupee depreciation, and Middle East conflict-related supply disruptions. ICICI Securities expects revenue growth above 15 percent for Q1FY27 with margin expansion from Q2FY27, though gradual price cuts after Diwali could weigh on realisations in H2FY27.