How far is the Indian paint industry valuations reasonable?
The Indian paint industry is growing at a rapid rate surpassing the country’s real GDP growth by 1.5 to 2 times on a year to year basis. Globally the paint industry has been growing by around 3%, with the developed countries’ paint market registering growth lower than 3 %. Hence the average P/E for the Indian industry which is around 18-20 times forward earnings seems justified considering the enormous growth prospect.
