Brent crude price, which stood around $106 per barrel before the Russian invasion of Ukraine on February 24, has surged 23.48% to $130.89 per barrel.
Shares of paint companies such as Asian Paints, Berger Paints have fallen up to 18 per cent in the last four sessions as Brent crude oil prices hit fresh highs, threatening to eat into the profits of these firms.
Crude oil accounts for about half of the raw materials used in the manufacturing process of paint companies, and so a sharp drop in oil prices will shrink their margins.
The ongoing Russia-Ukraine war has pushed Brent crude prices to a new high of $130.89 a barrel, a jump of more than $10 a barrel against Friday's $118.03. Brent crude, which was around $106 a barrel before the Russian invasion of Ukraine on February 24, has risen 23.48 percent to $130.89 a barrel.
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However, Brent crude rates are still far from the all-time high of $147.50 in July 2008. Here's a look at how paint stocks have tumbled amid rising crude oil rates.
Asian Paints: The industry leader's stock has lost 18 per cent in the last four sessions. The large cap stock, which stood at Rs 3,172.65 on February 28, fell as low as Rs 2,601 on BSE today. The stock fell 5.04 per cent to Rs 2,601 against the previous close of Rs 2738.95 on the BSE. The stock is down 20.84 percent in 2022, but has gained 12.17 percent in the past year.
Berger Paints: The stock of another industry firm fell 9.70 per cent to Rs 623.50 today, from Rs 690.55 on February 28 this year. The large cap share fell 4.63 per cent today against its previous close of Rs 653.80 on BSE. The stock opened today with a decline of 2.88 per cent at Rs 635. The stock has fallen 18.62 per cent in 2022 and 14 per cent in the past year.
Indigo Paints: The stock of the new entrant in the industry has lost 17 per cent in four sessions. The stock, which closed at Rs 1,803.55 on February 28, fell to a low of Rs 1497.65 on the BSE today. It opened at Rs 1,625, down 2.9 per cent from the previous close of Rs 1673.55. It touched a low of Rs 1497.65, down 10.51 per cent on the BSE today.
Kansai Nerolac Paints: The stock has fallen 7.11 per cent to Rs 422.05 today against the level of Rs 454.4 on BSE on February 28. The large cap stock fell by 5.5 per cent to a low of Rs 422.05 today. It opened with a decline of 2.62 per cent at Rs 434.90, compared to closing at Rs 446.60 earlier. The stock has lost 25.28 per cent in the past one year and is down 27 per cent since the beginning of this year.