Repainting constitutes over 70% of the paint demand in the country, and occupies similar or higher proportion (around 90% I believe) of Asian paints demand. Therefore its demand remains quite robust irrespective of the real estate cycle.
Asian paints is more than a brand; it is an exceptional paint logistics company. Its ability to restock dealers on short notice is unparalleled. This allows dealers to maintain smaller stock which they can replenish on actual customer demand. Therefore unlike for other paint companies, dealers don’t have to take credit from Asian paints, and can pay the company quickly in cash. This results in a very small cash conversion cycle for Asian paints which is its moat.
Also repainting demand has proved quite inelastic to raw material prices. People don’t usually postpone their decision to paint home based on current prices.