ASIAN PAINT: Paint category is astonishingly only 30-35% organized. Which means major player like Asian paints have a huge scope to further consolidate the market as GST kicks in. With strong distribution system, big branding focus and govt’s push on housing, Asian Paints can reap the benefits. On operational front, the major input for production for paint is petro chemical products. Once government decides to get this too in GST ambit there can be directly 5-7% savings on margin. As for now company is going to have savings on logistics, warehousing, trade leakages, and miscellaneous production inputs. Therefore it is a big, steady, & long term company to park your money!
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Sector to watch:
Positive: Paint & Chemical, #FMCG
Stocks to watch:
Positive: #Ambujacem #Shivacem #Indiahume #Sunpharma #Asianpaint #Pidilitind #ITC #HUL #Marico
