Akzo Nobel - Increasing share from institutional business; Not Rated - Emkay

- Demand in decorative paints remains sluggish. Akzo Nobel targets USD 1bn revenue (incl. inorganic growth) by FY15, though next 2 quarters to witness muted volume growth

- Price hikes difficult to initiate. However, if there is easing in RM costs, the companies plan to pass on the benefit to consumers to boost demand

- RM pressure to sustain with crude again trading upwards of $100 (up from $90). Since 40% of RM is imported, depreciating rupee has also impacted RM cost

- Company indicated that no acquisition opportunity exists in decorative paint company. But acquiring chemical or industrial paint company, might lead to further de-rating.

Source : Equity Bulls

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