Akzo Nobel India (ANL) — the company that gave your walls Dulux shine while quietly being the Dutch uncle in India — is now in the middle of a custody battle. Market cap? ₹15,277 crore. Current price? ₹3,355. Past year return? A dull -11% (ironically for a paint stock).
With a P/E of 38x, ROE of 32%, and dividend yield of 2.98%, it’s like that studious kid in class who gets decent marks, shares his lunch, but still gets kicked out when JSW Paints decides to buy the whole classroom.
2. Introduction
Akzo Nobel India was the “well-behaved foreign MNC paint subsidiary” for decades. A safe, steady dividend payer. But FY25 flipped the script: Dutch parent sold its entire 74.76% stake to JSW Paints, who now plans to paint the town Ambani-style.
Imagine: Dulux dog shaking hands with Sajjan Jindal. Corporate India hasn’t seen this much drama since HUL sold Modern bread. Add in GST notices (Kerala, MP, Karnataka all taking their cut), and you have a company that needs as many lawyers as color swatches.
Question: Do you trust JSW Paints to run Dulux better than Akzo? Or are we about to see Nerolac-style midlife crisis in brand positioning?
3. Business Model – WTF Do They Even Do?
Akzo sells paints and coatings. But unlike Asian Paints (pure decorative boss), ANL is like a buffet:
Decorative Paints: Dulux, waterproofing, stains — the usual “ghar ka makeover” stuff.
Automotive & Specialty Coatings: For cars, electronics, and refinishes.
Powder Coatings: Used in appliances, architecture, and industrial finishes.
Marine & Protective Coatings: Fancy way of saying “we paint ships, rigs, and wind turbines.”
Industrial Coatings: From food cans to building roofs, if it needs color, ANL has a SKU.
95% of revenue is domestic. Only 5% exports — basically, India buys the colors, not the world.
Roast: ANL is like that kid who takes every elective in college but doesn’t top any.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
Same Qtr LY (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
995
1,036
1,022
-3.9%
-2.6%
EBITDA
134
169
159
-20.7%
-15.7%
PAT
91
115
108
-20.9%
-15.7%
EPS (₹)
19.9
25.2
23.6
-20.9%
-15.7%
Commentary: Revenue slipped, profits fell harder — paint industry slowdown + cost inflation. Akzo’s EBITDA margin at ~13% this quarter, vs Asian Paints’ 17%. JSW bought into weakness — smart or suicidal? Time will tell.
5. Valuation Discussion – Fair Value Range
Method 1: P/E
Annualized EPS = ₹88.9.
Industry P/E = 47x.
Fair range = ₹88.9 × (30–45) = ₹2,670 – ₹4,000.
Method 2: EV/EBITDA
EV = ₹15,040 Cr.
FY25 EBITDA = ₹642 Cr.
EV/EBITDA = 23.7x. Industry ~20x.
Fair range = 20× EBITDA = ~₹12,800 Cr → per share ~₹2,800.
Method 3: DCF
Assume growth 10%, discount 12%, terminal 4%.
Fair value range ~₹2,900 – ₹3,300.
Overall Fair Value Range: ₹2,700 – ₹4,000. (Disclaimer: Educational purposes only, not investment advice. Don’t repaint your house based on this range.)
6. What’s Cooking – News, Triggers, Drama
Mega Deal: JSW Paints to acquire 75% stake. Open offer at ₹3,417/share. Dutch exit
