The Hindu Business Line : Goodlass Nerolac: For a dash of colour

FRESH exposures can be contemplated in the Goodlass Nerolac stock, the country's second largest paint manufacturer. We continue to maintain a positive outlook on the stock, in spite of a sharp run-up in price over the past two months, as business prospects continue to look good.

The company derives 55 per cent of its revenues from the decoratives segment; the industrial segment contributes the rest.

Key triggers for growth in the decoratives segment would be better rural demand on account of a good monsoon, the pre-Diwali season offtake that manifests itself usually in August and September and the sustained demand for housing.

The company is a dominant player in the industrial segment catering to the needs of auto majors such as Maruti and Telco. Offtake of automobiles continues to show resilience; we believe that the fall in Maruti's sales on account of strike at one of its supplier's factory is but a temporary blip. Once demand rebounds, Goodlass should be a direct beneficiary.

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