Paint stock falls 15% after Imperial Chemical is likely to offload up to 9% stake worth ₹1,290 Cr

Synopsis: Imperial Chemical Industries to sell 9 percent of its stake in a consumer durable company. The stake in context is worth Rs 1,290.6 Cr.

On Tuesday, a small-cap consumer durables stock came into focus after news emerged that its promoter, Imperial Chemical Industries, plans to sell a 9 percent stake worth Rs 1,290.6 crore. With a market cap of Rs 14,382 Cr, Akzo Nobel India Ltd saw its stock hit an intraday low of Rs 3,080 which is 15 percent lower than the previous close of Rs 3,623.95.

What’s the News?

Promoter of the company, Imperial Chemical Industries is set to offload up to 9 percent stake in Akzo Nobel India through a large block deal worth approximately Rs 1,290 crore, putting pressure on the paints maker’s share price. Reports indicate the transaction could be executed at a discount to market price with a floor price of Rs 3,150 per share, prompting heightened selling in early trade as investors react to the potential sell-off. Akzo Nobel India’s stock remains in focus as this block deal may influence market sentiment and trading activity. 

Business & Financial Overview

Incorporated in 1954, Akzo Nobel India Ltd operates in the business of manufacturing, trading, and sale of paints & related products. The company caters to both decorative and industrial segments. Akzo Nobel India Ltd also offers research and development (R&D) services to its holding company and other group entities.

In the latest quarter the company saw a YoY revenue fall by 15.01 percent, going from Rs 982 Cr in Q2FY25 to Rs 835 Cr in Q2FY26, while the QoQ went down by 16 percent from Rs 995 Cr in Q1FY25.

The YoY Net Profits went down by 25 percent, going from Rs 98 Cr in Q2FY25 to Rs 73 Cr in Q2FY26 , while the QoQ fell by 19.7 percent from 91 Rs Cr in Q1FY25. But if the company’s profit from exceptional items are also included then the profit goes to Rs 1,683 Cr for Q2FY26, which is a YoY growth of 1617 percent. Another point to highlight is that the stock has a PE of 36x while the industry PE stands at 42x. The company has a ROCE of 41.6 percent and ROE of 32.3 percent.

Written by Adithya Menon

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