Spike in crude oil prices takes away the gloss from paint companies' shares

Margins could be badly impacted, while weak demand across segments could disrupt top lines

The paints industry has seen margins crunched by the spike in crude oil and gas prices since this is base raw material which accounts for a significant percentage of costs. Another factor that may worry the industry is weak consumption demand.

Weak demand could play a role in housing (decorative paints), in commercial real estate (also decoratives) and in the auto industry (industrials). Vehicle sales are weak. The rural and semi-urban economy is seeing weak demand, which may affect affordable housing. The Work from Home protocols are still in place in many ways, and there’s less demand for commercial real