Synopsis : Asian Paints shares slipped after the CCI ordered a probe into alleged exclusionary practices, prompting the company to assert it will take legal recourse while cooperating fully with the investigation. Despite recent gains, Asian Paints faces fresh regulatory headwinds amid India’s rapidly expanding paints and coatings market.
Shares of Asian Paints Limited came under pressure today (July 4) after the Competition Commission of India (CCI) directed the Director General to initiate an investigation into the company over allegations of exclusionary practices. The stock fell less than 1% to Rs 2,426.90 apiece around 12:19 pm, with around 3.10 lakh shares changing hands.
In a regulatory filing on July 3, Asian Paints confirmed it is reviewing the CCI’s order and intends to take appropriate legal recourse while extending full cooperation to the investigation. “The Company remains committed to fully cooperating with the CCI during the course of the investigation,” it stated.
Asian Paints, a BSE Sensex component, has delivered a positive return of 7.81% over the past month and 2.96% in the past three months. However, the stock has witnessed a 17.57% decline over the past year and a 27.57% drop in two years, even as it remains a strong long-term performer with a 42.97% rise over five years and a 214% gain in the past decade.
Earlier in June, Asian Paints paid a dividend of Rs 20.55 to shareholders, continuing its consistent dividend history. According to ICICI Direct, India’s paints and coatings market is projected to grow at a CAGR of 9.38%, reaching USD 15.04 billion by 2029, underlining the sector’s strong fundamentals despite regulatory challenges.
As the probe unfolds, Asian Paints will be in focus among investors and analysts keen to track the potential impact on the company’s growth trajectory and sentiment in the fast-growing paints sector.
Disclaimer : This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.
