JK Cement's foray into paints sentimentally negative in near-term: Analysts

That said, if JK Cement is able to achieve its guidance, it could potentially add nearly 5 per cent to its market-cap over the medium term, expects Emkay Global

Amid soaring oil prices and likely intensifying competition in the paint business going ahead, analysts are skeptical about the timing of JK Cement’s foray into the segment.   

While some say the entry in this segment at such a lower scale does not make much business sense at the current juncture, others say it won’t be easy for the company to establish itself in the decorative paints segment. 

This is because consumers trust in existing brands, and an infrequent purchase cycle makes it difficult for new entrants to gain share in mid-to-premium emulsions that command the bulk of the profit