Buy This Paints Stock Trading Close To Its 52-Week Low Price For 24% Gains In Short Term: HDFC Securities

While much of the losses in Thursday's session have been recovered, experts recommend high caution and wait for more stability in the markets. Here is a paints stock trading close to its 52-week low price suggested to be a 'Buy' by HDFC Securities:

About the company:

Akzo Nobel classified as the small cap company carries out the manufacture as well as marketing of paints including speciality chemicals and adhesives. The company's 2 major brands are Dulux and Duco.

Buy Akzo Nobel for a target price of Rs. 2315

On February 21, 2022, the brokerage recommended the buy on the scrip for a target price of Rs. 2315 for a 6 month period. From the current price level of Rs. 1870.6 per share, the potential gains can be up to 23.76 percent in the short term.

 

Akzo Nobel Q3fy22 results as per the brokerage:

For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 919.06 Crore, up 23.55 % from last quarter Total Income of Rs 743.90 Crore and up 17.78 % from last year same quarter Total Income of Rs 780.35 Crore. Company reported net profit after tax of Rs 83.82 Crore in the period under review.

Why ‘Buy’ the scrip of Akzo Nobel?

Even amid the Covid led fall out, paints sector has been showing resilience since Q2fy21 period. Further as work from home and policy initiatives to boost residential real estate became the norm, paints sector saw a recovery faster than other discretionary segments. Further driving forces such as demographic-led growth, housing growth, shortening repainting cycle as well as premiumisation shall also help the company. Furthermore, the company will also turn out to be the biggest beneficiary in the industrial segment too owing to the upturn in the capex cycle.

Disclaimer:

Investing in the stock market is risky. Investors must therefore exercise due caution. Greynium Information Technologies and the author are not liable for any losses caused as a result of decisions based on the article.