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Brighter year ahead: analysts expect 14-21% rise in paint stocks

Given the pickup in the rural economy and expected growth of the automobile and infrastructure sectors, major paint players are likely to clock double-digit growth in volume in FY19

Brighter year ahead: analysts expect 14-21% rise in paint stocks
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Shreepad S Aute
Share prices of most paint companies have lagged the S&P BSE Sensex in the last six months on worries over rising prices of key inputs and expectations of muted volumes, also partly reflecting in the October-December 2017 (Q3) performance. However, things are changing for the better.
 
Higher prices of titanium-dioxide, mainly due to a supply disruption in China,  and crude-based derivatives — key raw materials used by paint companies — weighed on their gross profit margins in Q3.
 
Gross profit is calculated by deducting the cost of goods sold (raw material, inventory drawdown, goods purchased) from

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