ICICI Securities Turns Bullish on Paints Sector, Upgrades Asian Paints and Berger Paints

After four years of a bearish outlook, ICICI Securities has reversed its stance on the Indian paints industry, upgrading

aints Ltd. and aints Ltd. to an 'Add' rating from 'Reduce.' The brokerage anticipates a recovery in revenue growth for FY26 following a decline in FY25, driven by improving demand and favorable market conditions. ICICI Securities raised its target price for Asian Paints to Rs 2,700 per share from Rs 2,000 and for Berger Paints to Rs 650 from Rs 515. The 'Add' rating, rather than 'Buy,' reflects a cautious optimism amid a shifting industry landscape. New entrant Birla Opus is projected to capture approximately 10% market share within three years, while JSW Paints, bolstered by its acquisition of Akzo Nobel India, is expected to compete intensely with Kansai Nerolac for the third spot in the market.