A textbook illustration of this is the performance of India’s leading paint company over the past decade. In early 2014, the company experienced a surge in stock price, underpinned by robust earnings growth, driven by aggressive distribution expansion and increased production capacity. This phase of strong performance persisted for nearly four years. However, between FY17- FY19, the stock's trajectory plateaued as gross margins came under pressure due to raw material inflation—resulting in the stock merely mirroring broader market returns. Subsequently, in post-COVID period, the company saw a resurgence in earnings, particularly due to a surge in home improvement demand, leading to 46% earnings growth and a 132% increase in stock price—double the market’s performance during that period. Yet in last two years, heightened competition and sluggish consumption have dragged the stock down, leading to a relative underperformance.