Kansai Nerolac Paints Ltd - Stock Valuation and Financial Performance

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

Kansai Nerolac Paint Share Price

262.25 -2.25 -0.85%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Kansai Nerolac Paint

Overall Rating
Bole Toh

1. Quality

2. Valuation

Undervalued

3. Price Trend

Kansai Nerolac Paints stock performance -

mw4me loader
P/E Ratio (SA):
18.19
Market Cap:
21,381.6 Cr.
52-wk low:
247.5
52-wk high:
355

Is Kansai Nerolac Paints Ltd an attractive stock to invest in?

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 Undervalued 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 14.5%16.8%24.9%17%16.2%13.4%14.7%13.4%9%11%-
Value Creation
Index
0.10.20.80.30.40.20.30.2-0.20.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3,1643,5493,7393,9994,5875,1744,9434,7715,9497,0817,337
Sales YoY Gr.-12.2%5.3%7%14.7%12.8%-4.5%-3.5%24.7%19%-
Adj EPS 2.53.26.45.765.56.56.44.55.914.5
YoY Gr.-27.7%99.1%-12.1%6.4%-9.3%19.8%-1.4%-30%30.2%-
BVPS (₹) 17.619.83134.738.742.446.950.451.65768.7
Adj Net
Profit
2052615204564854415285203654751,175
Cash Flow from Ops. 18930239034537711062165559.1386-
Debt/CF from Ops. 0.30.10.10.10.10.10000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.4%9.1%12.7%19%
Adj EPS 9.8%-0.5%-3.5%30.2%
BVPS13.9%8.1%6.7%10.4%
Share Price 12.8% -2.7% -11.5% 2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
15.117.325.417.216.413.514.613.28.810.823.2
Op. Profit
Mgn %
11.412.515.518.317.214.315.817.710.911.213.6
Net Profit
Mgn %
6.57.413.911.410.68.510.710.96.16.716
Debt to
Equity
0000000000-
Working Cap
Days
10910194108124132146153146142102
Cash Conv.
Cycle
4746342537495960657169

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 23.10%

Sales growth is growing at healthy rate in last 3 years 12.73%

Net Profit has been subdued in last 3 years -3.49%

Sales growth is not so good in last 4 quarters at 6.89%

Latest Financials - Kansai Nerolac Paints Ltd.

Standalone Consolidated
TTM EPS (₹) 14.5 14.4
TTM Sales (₹ Cr.) 7,337 7,766
BVPS (₹.) 68.7 67.6
Reserves (₹ Cr.) 5,471 5,384
P/BV 3.85 3.91
PE 18.19 18.38
From the Market
52 Week Low / High (₹) 247.47 / 355.00
All Time Low / High (₹) 1.45 / 453.07
Market Cap (₹ Cr.) 21,382
Equity (₹ Cr.) 80.8
Face Value (₹) 1
Industry PE 46.4

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

Key Ratios of Kansai Nerolac Paint

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales3,1643,5493,7393,9994,5875,1744,9434,7715,9497,081
Operating Expenses 2,8033,1043,1593,2693,7974,4324,1623,9275,3026,287
Manufacturing Costs330344373395459525448456603658
Material Costs1,9102,1192,0902,0712,4472,9262,7282,6053,6444,440
Employee Cost 125143157182210238269269312334
Other Costs 437498539621681743716598742856
Operating Profit 361445579730790742782844647794
Operating Profit Margin (%) 11.4%12.5%15.5%18.2%17.2%14.3%15.8%17.7%10.9%11.2%
Other Income 10222798726227393331
Interest 000000581010
Depreciation 646867697690120149154165
Exceptional Items 005350000-11-110
Profit Before Tax 3073991,075759786713684714505650
Tax 100127176253270246148183131164
Profit After Tax 207272899506516467535531374486
PAT Margin (%) 6.5%7.7%24.0%12.7%11.3%9.0%10.8%11.1%6.3%6.9%
Adjusted EPS (₹)2.63.411.16.36.45.86.66.64.66.0
Dividend Payout Ratio (%)29%28%18%32%27%30%32%53%32%30%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1,4231,5972,5032,8053,1253,4243,7874,0774,1714,604
Share Capital 54545454545454545454
Reserves 1,3691,5432,4492,7513,0713,3713,7334,0234,1174,550
Minority Interest0000000000
Debt524229181030800
Long Term Debt524229181030000
Short Term Debt0000000800
Trade Payables441322543550684632520823890938
Others Liabilities 339383136224249246286330334534
Total Liabilities 2,2552,3433,2113,5974,0684,3064,5925,2385,3966,075

Fixed Assets

Gross Block1,3361,3991,4811,5701,7042,1032,6152,8463,0803,349
Accumulated Depreciation4264945556246987889061,0691,2041,354
Net Fixed Assets9109059269461,0061,3161,7081,7771,8761,995
CWIP 484442142343315164206224113
Investments 56216547553546304455770300653
Inventories6465425726918061,0539301,1121,5321,648
Trade Receivables4554965255726766746758479651,117
Cash Equivalents 553447825036181166838195
Others Assets86107122443330563494444418455
Total Assets 2,2552,3433,2113,5974,0684,3064,5925,2385,3966,075

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 18930239034537711062165559386
PBT 3073991,075759786713684714505650
Adjustment 5351-489-91840108145111158
Changes in Working Capital -88-2652-181-154-345-15-56-407-246
Tax Paid -83-121-249-224-273-298-156-149-151-176
Cash Flow From Investing Activity -112-239145-567-15586-344-465251-274
Capex -124-90451-204-333-523-217-98-214-110
Net Investments 4-155-320-359159672-90-349461-267
Others 7715-319-64-37-194104
Cash Flow From Financing Activity -82-85-91-212-206-178-192-276-324-89
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000-10-9-6000
Interest Paid 0000000-100
Dividend Paid -59-59-75-164-162-140-140-237-283-54
Others -22-25-16-47-34-29-46-37-41-35
Net Cash Flow -5-21444-433171885-86-1424
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)15.2517.9943.8519.0617.4214.2714.8513.499.0811.09
ROCE (%)21.6925.5951.428.2426.3121.6919.0618.3512.4815.04
Asset Turnover Ratio1.731.831.661.451.361.361.231.091.251.38
PAT to CFO Conversion(x)0.911.110.430.680.730.241.161.230.160.79
Working Capital Days
Receivable Days43414041444345525048
Inventory Days58514447536066707373
Payable Days79667696928277948673

Kansai Nerolac Paints Ltd Stock News

Kansai Nerolac Paints Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Kansai Nerolac Paint on 28-Mar-2024 16:01 is ₹262.2.
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 28-Mar-2024 16:01 the market cap of Kansai Nerolac Paint stood at ₹21,381.6.
The latest P/E ratio of Kansai Nerolac Paint as of 28-Mar-2024 16:01 is 18.19.
The latest P/B ratio of Kansai Nerolac Paint as of 28-Mar-2024 16:01 is 3.85.
The 52-week high of Kansai Nerolac Paint is ₹355.0 and the 52-week low is ₹247.5.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Kansai Nerolac Paint is ₹7,337 ( 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.
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