Kansai Nerolac (KNPL) result was below our estimates due to higher than expected raw material cost pressure. Business recovery remained strong driven by resilient volume growth and price hikes (driven by input cost pressure). In international market; KNPL improved operating profit margins in Nepal and Bangladesh while reduced EBITDA loss in Srilanka during FY21. Raw material cost inflation remained a major concern. However, KNPL has been able to take price hike in decorative (by 2.5%) and industrial coatings (by 3-4%) businesses to offset inflation. Management expects raw material cost to subside due to tepid demand. Positively, KNPL introduced entire range of...