Review

AKZO NOBEL INDIA LIMITED 

Ticker : 500710
FV : Rs 10 
52-Week H/L: Rs  2510/1760

We had previously recommended Akzo Nobel India Limited in volume 37, no. 11, dated January 4, 2021, when the scrip was trading at Rs 2,410.50. It was recommended based on strong demand growth in the paint sector to drive the company’s business growth. On the consolidated quarterly front, its net sales rose by 6.55 per cent to Rs 774.64 crore in Q3FY21 from Rs 727.03 crore reported in Q3FY20. PBDT for Q3FY21 came in at Rs 137.49 crore, increasing by 11.19 per cent compared to Rs 123.65 crore in Q3FY20. In Q3FY21, its net profit was up by 13.48 per cent to Rs 87.37 crore from Rs 76.99 crore reported in Q3FY20. For Q3FY21, Akzo Nobel witnessed healthy growth. Its increase in market share in the economy emulsion is expected to augur well for volume and margin growth. Hence, we recommend HOLD.