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Paint stocks in red: Analysts flag slow recovery, muted growth outlookHSBC said the wait for the paints industry cycle to turn could be a long one with potential structural concerns. Meanwhile, Macquarie said demand uptick is key for the performance of the companies.By Shloka Badkar  February 18, 2026, 9:39:39 AM IST (Updated)2 Min ReadPaint stocks were trading lower on Wednesday, February 18, as brokerages HSBC and Macquarie's views on the sector remain muted.

HSBC and Macquarie see limited further tailwinds and moderate pace of recovery for the sector.

HSBC

The analyst said that the wait for the industry cycle to turn could be a long one with potential structural concerns.

It sees limited further tailwinds from weak raw material prices and competitive industry dynamics amid weak demand.

It re-iterated its 'hold' rating on Asian Paints and Berger Paints. It said valuations are elevated for high single-digit earnings before interest, tax, depreciation and amortisation (EBITDA) growth estimated over the financial year 2027.

Macquarie

The analyst said the third quarter witnessed:

Slower sales growth compared to the second quarter due to weak October offset pick-up in November/December.

Guarded outlook on demand.

Stabilisation of competitive pressures.

It sees a moderate pace of recovery, which it expects to pain out in the second half of the ongoing calendar year. It said the December quarter's EBITDA miss has driven cuts to earnings per share/target price across the board.

Demand uptick is key for the performance of the paint companies, Macquarie said.

The analyst prefers Asian Paints, then Kansai NerolacPaints and then Berger Paints. It sees Asian Paints witnessing lower margin impact from Grasim's competitive actions.

Here is a roundup of analyst views on the paint stocks:

StockBuyHoldSellAsian Paints14816Berger Paints1258Kansai Nerolac865

Shares of the three paint stocks were largely in the red, with Berger Paints and Kansai Nerolac trading up to 0.6% lower and Asian Paints being flat.

Also Read: LG Electronics India in focus; Goldman Sachs sees 13% upside on faster-than-industry growth outlookContinue ReadingFirst Published: Feb 18, 2026 8:16 AM ISTTagsAsian PaintsBerger PaintsKansai NerolacPaint stockspaintsshare market today