Shares of Asian Paints Ltd. fell significantly on December 19, 2024, dipping by 3.4% to ₹2,265.35 on the National Stock Exchange (NSE), reaching a 52-week low. This marks the fourth consecutive session of decline, with the stock losing more than 8% this month and more than 32% year-to-date.
The drop followed the announcement of the resignation of two senior executives: Shyam Swamy, the Vice President of Home Improvement, and Vishu Goel, the Associate Vice President of Retail Sales. Both executives resigned citing “personal reasons.”
In an official notification, the company confirmed that Goel’s resignation was accepted on December 17, 2024, and he ceased to be a member of the senior management. Similarly, Swamy’s resignation was also confirmed on the same day. However, the company did not provide further details about the reasons behind the executives’ departures.
The paint giant also announced new management appointments, with Ashish Rae taking over as the Associate Vice President of Retail Sales, Marketing & Commercial from January 2, 2025, and Gagandeep Singh Kalsi expanding his role to oversee Décor and Services from December 23, 2024.
Why the Fall in Asian Paints’ Stock?
Asian Paints’ recent stock fall has been triggered by a combination of increasing competition in the paint industry and challenging market conditions. New players like Birla Opus and JSW Paints are posing a threat to established leaders such as Asian Paints and Berger Paints.
The company also faces the impact of rising inflation in urban areas, which is affecting consumer demand. During its earnings report for the September 2024 quarter, Asian Paints disclosed that the paint industry was experiencing subdued demand. The domestic Decorative coatings segment saw a slight dip in volumes, and overall domestic coatings revenue fell by 5.5%, influenced by muted consumer sentiments and extended rains and floods in certain parts of the country.