Paint Stocks Surge as Competition Fears Ease Following CEO Exit

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Last Updated: 6th November 2025 - 05:09 pm

Summary:

Asian Paints shares surged nearly 6% to ₹2,631 and Berger Paints rose over 3% to ₹554.80 amid positive market sentiment following the resignation of Rakshit Hargave, CEO of Birla Opus Paints. Hargave’s exit eased fears of disruption from Birla Opus, a competitor launched in 2024. Despite heavy investment by Birla Opus, the legacy players maintained resilient margins and market share. Nomura upgraded both to ‘Buy,’ noting competition concerns have lessened. Additionally, Asian Paints gained from a recent MSCI index rebalancing, boosting investor interest.
 

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Asian Paints shares surged nearly 6%, hitting a high of ₹2,631 on the NSE, while Berger Paints rose over 3% to ₹554.80, marking a significant rally in the paint stocks sector. This uptick follows the recent resignation of Rakshit Hargave, CEO of Birla Opus Paints, which was confirmed in a filing by Grasim Industries. Hargave's departure is seen as a key development, given his instrumental role in setting up and scaling Birla Opus, which launched in February 2024 with three manufacturing plants across India and had posed initial competitive concerns for established players like Asian Paints and Berger Paints.

Despite the entry of Birla Opus with its massive ₹10,000 crore investment, the feared disruption to the market has not materialised. The legacy companies have maintained resilient margins and market share, which helped ease investor concerns. Nomura recently upgraded both Asian Paints and Berger Paints to 'Buy', noting that the worst of the competitive pressure is behind them. The brokerage highlighted that while FY25 volumes were affected by weak industry demand and Birla Opus's market entry, the impact on margins remained within long-term normative bands, and there were no major disruptions in product pricing or dealer margins.

Additional factors contributing to the rally include a boost from institutional interest and positive seasonal demand dynamics aligned with the festive season. Asian Paints also benefited from a recent MSCI index rebalancing announcement, increasing its index weightage, which typically attracts more investment inflows.

The impressive gains mark one of the strongest short-term performances for these stocks in several months, reflecting investor confidence in the paint sector's stability and growth prospects despite recent challenges.​
 

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