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Kansai Nerolac Paints Ltd Stock Analysis

Large Cap
Evaluated by 3409 users | BSE: 500165 | NSE: KANSAINER |
Paints

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...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 19.72%19.48%23.01%14.46%16.77%24.85%16.97%16.24%13.41%14.71%
Value Creation Index 0.640.540.820.150.330.970.340.290.06NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,1412,6012,8573,1643,5493,7393,9994,5875,1744,943
Y-o-Y Gr. Rt.-21.5%9.9%10.8%12.2%5.3%7%14.7%12.8%-4.5%
Adjusted EPS (Rs.) 3.443.865.323.84.859.658.479.018.189.79
Y-o-Y Gr. Rt.-12.2%37.8%-28.6%27.6%99%-12.2%6.4%-9.2%19.7%
Book Value per Share (Rs.) 1719.7323.8626.4129.6346.4452.0657.9963.5570.27
Adjusted Net Profit 185208287205261520456485441528
Net Op. Cash Flow (Rs. Cr.) 130102224189302390345377110621
Debt to Cash Flow from Ops 0.630.730.310.30.140.110.080.050.090.01
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Kansai Nerolac Paints Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.7%6.9%7.3%-4.5%
Adjusted EPS 12.3%15.1%5%19.7%
Book Value per Share 17.118.910.510.6
Share Price 22.9% 18.7% 4.1% 8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 21.9521.0224.4115.117.3225.3617.216.3713.4614.64
Operating Profit Margin (%) 13.5812.9711.7711.4212.5315.4918.2517.2214.3415.81
Net Profit Margin (%) 8.66810.046.477.3713.911.4110.588.5210.68
Debt to Equity 0.090.070.050.040.030.020.010.0100
Working Capital Days 949610410910194108124132146
Cash Conversion Cycle 25394847463425374959
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 74.99%
Institutions 16.22%
Non-Institutions 8.79%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Kansai Nerolac Paints Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Kansai Nerolac Paints Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Kansai Nerolac Paints Ltd's performance infers:

Kansai Nerolac Paints Ltd earnings have grown by 15.1%, whereas share price has appreciated 18.7% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Kansai Nerolac Paints Ltd share prices over the last 10 years. Here is what we found out:

Kansai Nerolac Paints Ltd share price has appreciated 20% annually over the past ten years.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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