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Asian Paints, HUL may need bigger price hikes if crude remains elevated, CLSA warnsThe brokerage said that if crude oil prices remain elevated for an extended period, the benefits from any potential goods and services tax cuts may fade.By Meghna Sen  March 5, 2026, 10:07:49 AM IST (Published)1 Min ReadShares of consumer companies may remain in focus after brokerage firm CLSA said the ongoing conflict in Iran could have multiple implications for the consumer products sector.

According to the brokerage, the situation may affect companies through higher input and packaging costs if firms are unable to fully pass on the increase to consumers.

Rising crude-linked costs could put pressure on margins across several categories.

CLSA also cited a possible demand-side impact if consumer price inflation rises due to elevated energy prices. Higher inflation could weigh on discretionary spending and slow the pace of premiumisation in the sector.

In its coverage universe, CLSA said that Asian Paints, Hindustan Unilever and Godrej Consumer Products may require the steepest price increases to offset cost pressures.

In contrast, ITC, Nestlé India and Colgate-Palmolive (India) would likely need relatively lower price hikes.

The brokerage added that if crude oil prices remain elevated for an extended period, the benefits from any potential goods and services tax cuts may fade.

It also pointed out that competitive intensity remains high in segments such as paints and home and personal care, which could make it difficult for companies to implement meaningful price increases.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsAsian PaintsHindustan Unilever HULITC