We expect automotive paints demand to remain under pressure in the near term with recovery unlikely before festive season in 3Q19 and improvement in consumer sentiments. Inputs costs have peaked out and remained relatively stable enabling 200bps QoQ gross margin expansion. We believe that worst seems over on the margin front. We adjust the numbers for IndAS 116 only and estimate CAGR of 13.5% in volumes, 11.7% in revenues and 15.6% in PAT over FY19-21. Kansai is trading at 37.4xFY21 EPS. We value the stock at 40xJune21 EPS of Rs12 and arrive...