Kansai Nerolac's (KNL) Q2FY19 performance was largely hit by higher raw material prices leading to ~466 bps YoY fall in gross margin. Overall volume growth at ~9% in Q2FY19 was led by decorative paint segment due to pre-festive placements at dealer's level. However, we believe slower industrial paint volume growth was mainly due to inferior automotive paint demand from its key client. KNL expects double digit volume growth across the paint category led by the decorative segment in the next two years owing...