Stock Performance and Market Context
On 22 Jan 2026, Akzo Nobel India Ltd’s share price touched Rs.2916.1, the lowest level recorded in the past year. This decline comes after five consecutive days of losses, during which the stock has fallen by 5.79%. The day’s performance saw the stock underperform its sector by 1.43%, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained selling pressure and a lack of short-term momentum.
In contrast, the broader market showed mixed signals. The Sensex opened higher at 82,459.66 points, gaining 550.03 points (0.67%) but was trading slightly lower at 82,307.37 points (down 0.49%) during the day. Despite this, the Sensex remains 4.68% below its 52-week high of 86,159.02. Notably, the Sensex has experienced a three-week consecutive decline, losing 4.03% over this period, while mid-cap stocks led gains with the BSE Mid Cap index rising 1.28% on the same day.
Long-Term and Recent Financial Trends
Akzo Nobel India Ltd’s one-year stock performance has been notably weak, delivering a negative return of 21.39%, in stark contrast to the Sensex’s positive 7.73% return over the same period. The stock’s 52-week high was Rs.3909.25, highlighting the extent of the recent decline.
Over the last five years, the company’s net sales have grown at an annual rate of 12.42%, while operating profit has increased at 17.31%. However, recent quarterly results have shown a downturn. The net sales for the latest quarter stood at Rs.834.90 crores, reflecting a 17.5% decline compared to the average of the previous four quarters. Operating cash flow for the year was reported at Rs.310.80 crores, the lowest in recent periods, while the return on capital employed (ROCE) for the half-year was 22.13%, also at a low point.
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Promoter Stake and Market Confidence
Another notable development is the reduction in promoter shareholding. Promoters have decreased their stake by 8.56% over the previous quarter, now holding 61.2% of the company. This decline in promoter confidence may be interpreted as a cautious stance regarding the company’s near-term prospects.
From a broader perspective, the stock has underperformed not only in the last year but also over three years and the recent three-month period when compared to the BSE500 index, signalling below-par performance across multiple time horizons.
Valuation and Financial Health Metrics
Despite the recent price weakness, Akzo Nobel India Ltd maintains certain financial strengths. The company exhibits a high return on equity (ROE) of 24.90%, indicating efficient utilisation of shareholder funds. Additionally, the average debt-to-equity ratio remains at zero, reflecting a conservative capital structure with minimal leverage.
The stock’s price-to-book value ratio stands at 6, which is considered a premium relative to its peers’ historical averages. This valuation metric suggests that the market prices in expectations of sustained profitability or growth, despite recent setbacks. The company’s ROE of 17.4% further supports this valuation level.
Moreover, the stock offers a high dividend yield of 6.4% at the current price, providing income to shareholders amid the price decline. However, it is important to note that profits have fallen by 10% over the past year, aligning with the broader trend of subdued earnings performance.
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Summary of Key Metrics
To summarise, Akzo Nobel India Ltd’s current stock price of Rs.2916.1 represents a 52-week low, reflecting a sustained downtrend over recent months. The stock has underperformed the Sensex and its sector, with a one-year return of -21.39% against the Sensex’s 7.73%. The company’s financial results show a decline in quarterly net sales by 17.5% and a reduction in operating cash flow to Rs.310.80 crores. Promoter shareholding has decreased by 8.56% in the last quarter, now at 61.2%.
On the positive side, the company maintains a strong ROE of 24.90%, a zero debt-to-equity ratio, and a high dividend yield of 6.4%. However, the stock trades at a premium price-to-book ratio of 6, which may reflect market expectations despite recent earnings pressure.
These factors collectively illustrate the current state of Akzo Nobel India Ltd’s stock and financial position as of January 2026.
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