Asian Paints, Kansai Nerolac down 1-2% despite Citi remains positive on revenue growth prospects

Paint companies including Asian Paints and Kansai Nerolac Paints were down 1-2 percent despite research house Citi remained positive on revenue growth prospects of Indian paints industry.

Weak rupee and price hardening of raw materials are the major negatives.

It think that paint companies would take price hikes in October/November.

The companies could see downside risks to earnings if cost push sustains or price hikes are delayed, it feels.

Mazhar Mohammad of Chartviewindia.in has maintained buy on Asian Paints with a target of Rs 1390 in the short term.

At 14:40 hrs Asian Paints was quoting at Rs 1,305, down Rs 26, or 1.95 percent and Kansai Nerolac Paints was quoting at Rs 473.50, down Rs 7.50, or 1.56 percent on the BSE.