Kansai Nerolac Paints Ltd Stock Analysis

BSE: 500165 | NSE: KANSAINER | Paints | Large Cap

BSE Share Price Aug 19, 18:03
506.95 0.75 (0.15%)

DeciZen - Make an Informed Decision on Kansai Nerolac Paint

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Kansai Nerolac Paint Price Chart

P/E Ratio (SA) :
65.21
Market Cap :
27,280.1 Cr.
52-wk low :
358.1
52-wk high :
674.2
Bole Toh?

1. Is Kansai Nerolac Paints Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Kansai Nerolac Paints Ltd is a good quality company.

2. Is Kansai Nerolac Paints Ltd undervalued or overvalued?

The key valuation ratios of Kansai Nerolac Paints Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Kansai Nerolac Paints Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Kansai Nerolac Paints Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Kansai Nerolac Paint:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Kansai Nerolac Paints Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 23%14.5%16.8%24.9%17%16.2%13.4%14.7%13.4%9%-
Value Creation Index 0.70.10.20.80.30.40.20.30.2NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,8573,1643,5493,7393,9994,5875,1744,9434,7715,9496,572
YoY Gr. Rt. %-10.8%12.2%5.3%7%14.7%12.8%-4.5%-3.5%24.7%-
Adj EPS 5.33.84.99.78.598.29.89.76.87.8
YoY Gr. Rt. %--28.6%27.6%99%-12.2%6.4%-9.2%19.7%-1.3%-30%-
BVPS (₹) 23.926.429.646.452.15863.670.375.777.480.4
Adj Net Profit 287205261520456485441528520365418
Cash Flow from Ops. 22418930239034537711062165559.1-
Debt/CF from Ops. 0.30.30.10.10.10.10.1000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.5%8.3%4.8%24.7%
Adj EPS 2.7%-4.4%-6.2%-30%
BVPS 148.36.82.3
Share Price 18.7% 1.9% 2% -20%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 24.415.117.325.417.216.413.514.613.28.89.8
Op. Profit Mgn % 11.811.412.515.518.317.214.315.817.710.910.9
Net Profit Mgn % 106.57.413.911.410.68.510.710.96.16.4
Debt to Equity 0.1000000000-
Working Cap Days 104109101941081241321461531460
Cash Conv. Cycle 484746342537495960650

Recent Performance Summary

Sales growth is good in last 4 quarters at 20.15%

Return on Equity has declined versus last 3 years average to 9.80%

Sales growth has been subdued in last 3 years 4.76%

Net Profit has been subdued in last 3 years -6.16%

Latest Financials - Kansai Nerolac Paints Ltd.

Standalone Consolidated
TTM EPS (₹) 7.8 7.4
TTM Sales (₹ Cr.) 6,572 7,018
BVPS (₹.) 80.4 79.5
Reserves (₹ Cr.) 4,280 4,230
P/BV 6.29 6.37
PE 65.21 68.01
From the Market
52 Week Low / High (₹) 358.05 / 674.15
All Time Low / High (₹) 2.17 / 679.60
Market Cap (₹ Cr.) 27,280
Equity (₹ Cr.) 53.9
Face Value (₹) 1
Industry PE 86.6

Management X-Ray of Kansai Nerolac Paint :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of Kansai Nerolac Paint

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Kansai Nerolac Paints Ltd

Kansai Nerolac Paints was incorporated in 1920 as Gahagan Paints and Varnish Company. Later in 1930, three British companies were merged and Lead Industries Group was established. Today Kansai Nerolac Paints is amongst the leading paint companies in India.

Business area of the company

Kansai Nerolac Paints is amongst the leading paint companies in India. The company offers a range of products, including decorative, automotive coatings and performance coatings.

Products offered by the company

  • Nerolac Decorative Paints
  • Interior Wall Paints
  • Exterior Wall Paints
  • Wood Coatings
  • Metal Enamel Paints
  • Paint Ancillary
  • Adhesive
  • Hygiene care range

Awards

2011-2012

  • Certificate of Merit - Lote Zero Accident Frequency Rate.
  • Ace award- Best run business in Consumer Trade. 
  • Product of the year - Impressions Eco Clean.

2012-13

  • Environment Award-KNPL Bawal-Silver. 
  • Green Vendor Developer Program. 
  • Best business HR case study.

2013-14

  • Certificate of Merit - Lote [Zero Accident Frequency Rate. 
  • Vendor Performance award. 
  • Outstanding Contribution to Supply Chain Management. 
  • Best Quality Performance in Proprietary Items.

2014-15

  • Bawal plant - Gold,Safety. 
  • Best Vendor Award.
  • Design award for Ambient Media Category (Rang De Patang). 
  • Best Vendor in Safety Award-Bawal. 
  • Certificate of Excellence for Achieving Quality Targets.
  • Safety Systems Excellence Award. 

2015-16

  • Award for achieving the highest growth in refinish business. 
  • Best Eco Kaizen-Hosur.
  • Most Innovative Product of the Year Award-Nerolac Impressions HD.

Milestones

  • 1920- Gahagan Paints and Varnish Company was incorporated.
  • 1930- Lead Industries Group was established by merger of three British companies.
  • 1933- Lead Industries Group acquired 100% stake of Gahagan Paints and the company was renamed as Goodlass Wall (India)
  • 1946- Goodlass Wall was converted in private limited company.
  • 1957- Goodlass Wall was renamed as Goodlass Nerolac Paints and went public in the same year.
  • 1976- After acquisition Goodlass Nerolac Paints became part of Tata Forbes Group.
  • 1983- Goodlass Nerolac Paints entered into technical collaboration with Kansai Paint Co. and Nihon Tokushu Toryo Co. of Japan.
  • 1986- Goodlass Nerolac Paints Ltd. turned into a joint venture of the Tata Forbes and the Kansai Paint Co., with the latter acquiring 36% stake in the company.
  • 1999-Kansai Paint Company, Japan acquired the entire stake of Tata Forbes group and thus Goodlass Nerolac Paints became a wholly owned subsidiary of Kansai Paint Company.
  • 2006- Goodlass Nerolac Paints was rechristened to Kansai Nerolac Paints.
  • 2012- Kansai Nerolac decided  to enter JV with Nepal Shalimar, to acquire 68% stake in Nepalese paint major.
  • 2015- Kansai Nerolac Paints to enter Sri Lankan market.
  • 2015- Kansai Nerolac decided to set up a manufacturing unit in Gujarat at an estimated cost of Rs 350 crore.
  • 2019- Kansai Nerolac Paints starts commercial production at manufacturing unit in Punjab.
  • 2019- Kansai Nerolac launches 'Shera Para Shera Pujo 2019' campaign.
  • 2020- Kansai Nerolac Paints, Polygel complete acquisition of stake in Nerofix.
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