Paints, tiles players' stocks stand to gain from realty's revival

Favourable macros, market share gains for larger players, pent-up demand are key growth drivers

The real estate industry is hoping for a housing revival and also a bounce in commercial space. The beneficiaries of such a revival will include the paints industry and ceramic tiles industries.
 
Both were hit hard in financial year 2020-21 (FY21) by a drastic drop in demand and then rising input costs. The market performance in the recent past has been volatile with some shares doing well and others not so well.
 
High crude and gas prices affect both industries since petroleum products are raw materials (for paints) and fuel (for ceramics). In addition, displacement of migrant workers