Paint companies better-placed to tackle higher crude prices, say experts

Robust rural demand, pricing power to mitigate the risk of increase in input costs

Topics
Paint companies | Markets | Crude Oil

Yash Upadhyaya 

Shares of paint companies, after correcting as much as 5 per cent from their all-time highs on worries of rising crude oil prices, are again trading firm. Analysts say, while higher oil prices would have an impact on operating profits, companies are better-placed to handle it. Last week, oil prices hit their highest level since March on hopes of a faster global economic recovery following positive news flow on coronavirus vaccine.

International oil prices are up 25 per cent in a month. Crude oil and its derivatives account for about half of paint companies' cost. Oil prices and ...

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First Published: Mon, November 30 2020. 19:18 IST
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