A leading paint manufacturer’s shares are expected to be in focus on Monday after another paint company filed a complaint with the national competition regulator, alleging abuse of dominance, according to industry sources.

The parent company of the complainant reportedly submitted the filing in late 2024, alleging that the dominant market player pressured dealers by threatening reduced credit limits and withdrawal of contracts if they engaged with the complainant. The allegations also include delays in supplies and restrictions on access to tinting machines as coercive measures.

The accused company, which is the country’s largest paint producer, holds over half of the nation’s installed production capacity and operates an extensive distribution network with tens of thousands of dealers across numerous touchpoints.

Sources indicated that the competition regulator is expected to begin a formal investigation soon, with an order to initiate a probe likely in the near future.

Market data shows the average target price for the accused company’s stock suggests a modest potential upside. Analyst sentiment remains largely negative, with a majority issuing a ‘sell’ recommendation.

The stock has fallen significantly over the past one and two years, and the company’s current market valuation stands at a large-cap level.

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