Is Kansai Nerolac Paints 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 .

Is Kansai Nerolac Paints 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 Somewhat Undervalued zone .

What is Kansai Nerolac Paints share price return in the past 10 years ?

Kansai Nerolac Paints Ltd share price has appreciated 12.1% annually (CAGR) over the past ten years.

Is Kansai Nerolac Paints 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.

Kansai Nerolac Paints Ltd Stock Analysis

Item: Kansai Nerolac Paints Ltd
Rating: 4
Author: MoneyWorks4me Rating

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

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BSE Share Price 24-Mar-2023 18:03
384.30 -0.20 (-0.05%)

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

Standalone Basis ^P Consolidated Basis ^P

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

Value Creation ⓘ Value Creation Index Colour Code Guide ⓘ
	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	TTM
ROCE % ⓘ	23%	14.5%	16.8%	24.9%	17%	16.2%	13.4%	14.7%	13.4%	9%	-
Value Creation Index ⓘ	0.7	0.1	0.2	0.8	0.3	0.4	0.2	0.3	0.2	-0.2	-

Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	2,857	3,164	3,549	3,739	3,999	4,587	5,174	4,943	4,771	5,949	6,889
YoY Gr. Rt. %	-	10.8%	12.2%	5.3%	7%	14.7%	12.8%	-4.5%	-3.5%	24.7%	-
Adj EPS ⓘ	5.3	3.8	4.9	9.7	8.5	9	8.2	9.8	9.7	6.8	7.7
YoY Gr. Rt. %	-	-28.6%	27.6%	99%	-12.2%	6.4%	-9.2%	19.7%	-1.3%	-30%	-
BVPS (₹) ⓘ	23.9	26.4	29.6	46.4	52.1	58	63.6	70.3	75.7	77.4	83.7
Adj Net Profit ⓘ	287	205	261	520	456	485	441	528	520	365	417
Cash Flow from Ops. ⓘ	224	189	302	390	345	377	110	621	655	59.1	-
Debt/CF from Ops. ⓘ	0.3	0.3	0.1	0.1	0.1	0.1	0.1	0	0	0	-

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 ⓘ	14	8.3	6.8	2.3
Share Price	12.1%	-4%	3.2%	-15.3%

Key Financial Parameters ⓘ Performance Ratio Colour Code Guide ⓘ
	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	TTM
Return on Equity % ⓘ	24.4	15.1	17.3	25.4	17.2	16.4	13.5	14.6	13.2	8.8	9.6
Op. Profit Mgn % ⓘ	11.8	11.4	12.5	15.5	18.3	17.2	14.3	15.8	17.7	10.9	10.5
Net Profit Mgn % ⓘ	10	6.5	7.4	13.9	11.4	10.6	8.5	10.7	10.9	6.1	6.1
Debt to Equity ⓘ	0.1	0	0	0	0	0	0	0	0	0	-
Working Cap Days ⓘ	104	109	101	94	108	124	132	146	153	146	0
Cash Conv. Cycle ⓘ	48	47	46	34	25	37	49	59	60	65	0

Recent Performance Summary

Sales growth is good in last 4 quarters at 18.01%

Return on Equity has declined versus last 3 years average to 9.60%

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 (₹)	7.7	7.5
TTM Sales (₹ Cr.)	6,889	7,346
BVPS (₹.) ⓘ	83.7	82.9
Reserves (₹ Cr.) ⓘ	4,456	4,413
P/BV ⓘ	4.59	4.61
PE ⓘ	49.67	50.90

From the Market
52 Week Low / High (₹)	358.05 / 535.90
All Time Low / High (₹)	2.17 / 679.60
Market Cap (₹ Cr.)	20,711
Equity (₹ Cr.)	53.9
Face Value (₹)	1
Industry PE ⓘ	66.1

Management X-Ray of Kansai Nerolac Paint :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

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

Valuation of Kansai Nerolac Paint

Price Calculator

Price Chart

Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of Kansai Nerolac Paint

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

News

Kansai Nerolac Paints Ltd FAQs

What is the share price of Kansai Nerolac Paint ?

Company share prices are keep on changing according to the market conditions. The closing price of Kansai Nerolac Paint on 24-Mar-2023 18:03 is : 384.3.

What is the market cap of Kansai Nerolac Paint ?

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 24-Mar-2023 18:03 the market cap of Kansai Nerolac Paint stood at ₹ 20,710.7.

What is the PE ratio of Kansai Nerolac Paint ?

The latest PE ratio of Kansai Nerolac Paint as of 24-Mar-2023 18:03 is 49.67.

What is the PB ratio of Kansai Nerolac Paint?

The latest PB ratio of Kansai Nerolac Paint as of 24-Mar-2023 18:03 is 4.59

What is the 52-week high and low of Kansai Nerolac Paint ?

The 52-week high of Kansai Nerolac Paint is ₹ 535.9 and the 52-week low is ₹ 358.1.

What is the TTM revenue of Kansai Nerolac Paint ?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Kansai Nerolac Paint is ₹ 6,889 ( Cr.) .

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.