Stock Price Movement and Market Context
On 21 Jan 2026, Akzo Nobel India Ltd’s stock price fell by 1.16%, underperforming the paints sector by 0.56%. This decline extended a losing streak spanning four consecutive trading sessions, during which the stock has depreciated by 5.54%. The current price of Rs.2918.9 represents the lowest level in the past 52 weeks, down from a high of Rs.3942.15.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum. This technical positioning contrasts with the broader market, where the Sensex, despite a recent three-week decline of 5.2%, remains above its 200-day moving average, though below its 50-day average.
Financial Performance and Growth Metrics
Akzo Nobel India Ltd’s long-term growth trajectory has been modest. Over the last five years, net sales have grown at an annualised rate of 12.42%, while operating profit has expanded at 17.31%. However, recent quarterly results have shown a contraction, with net sales for the latest quarter falling by 17.5% to Rs.834.90 crores compared to the previous four-quarter average.
Operating cash flow for the year reached a low of Rs.310.80 crores, and the company’s return on capital employed (ROCE) for the half-year stood at 22.13%, the lowest recorded in recent periods. These figures highlight a deceleration in core financial metrics, contributing to the stock’s subdued performance.
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Promoter Stake and Market Sentiment
Promoter confidence appears to have waned, with a notable reduction in their shareholding by 8.56% over the previous quarter. Currently, promoters hold 61.2% of the company’s equity. This decrease in promoter stake may be interpreted as a cautious stance regarding the company’s near-term prospects.
From a broader market perspective, Akzo Nobel India Ltd has underperformed the BSE500 index over the last three years, one year, and three months. The stock’s one-year return of -22.40% contrasts sharply with the Sensex’s positive 7.15% return over the same period, underscoring relative weakness.
Valuation and Dividend Yield
Despite the recent price decline, the stock offers a relatively high dividend yield of 6.4% at the current price level. This yield is attractive compared to many peers within the paints sector. The company’s price-to-book value stands at 6, reflecting a premium valuation relative to historical averages and sector benchmarks.
Return on equity (ROE) remains robust at 24.90%, indicating efficient management of shareholder capital. The company maintains a low average debt-to-equity ratio of zero, suggesting a conservative capital structure with limited leverage.
Profitability Trends and Peer Comparison
While the company’s ROE remains high, profits have declined by 10% over the past year, aligning with the downward trend in stock price. This contraction in profitability, combined with the stock’s premium valuation, may contribute to the cautious market stance.
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Sector and Market Environment
The paints sector has experienced mixed performance, with Akzo Nobel India Ltd’s recent underperformance notable against sector peers. The broader market environment remains challenging, as reflected by the Sensex’s decline of 1.07% today to 81,304.54 points, following a negative opening and a three-week consecutive fall.
While the Sensex trades below its 50-day moving average, it remains above the 200-day average, indicating some underlying resilience in the broader market despite short-term pressures.
Summary of Key Metrics
Akzo Nobel India Ltd’s current Mojo Score stands at 36.0, with a Mojo Grade of Sell, downgraded from Hold on 22 Sep 2025. The company’s market capitalisation grade is 3, reflecting its mid-tier market cap status. These ratings align with the observed price weakness and financial trends.
The stock’s recent performance, combined with promoter stake reduction and subdued sales growth, has contributed to the current valuation and market sentiment.
Conclusion
Akzo Nobel India Ltd’s stock reaching a 52-week low of Rs.2918.9 highlights the challenges faced by the company in recent quarters and the broader market pressures. The combination of declining sales, reduced promoter confidence, and underperformance relative to benchmarks has weighed on the share price. While the company maintains strong management efficiency and a conservative capital structure, the current market valuation and financial results reflect a cautious outlook.
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