Kansai Nerolac Paints Ltd. share price target

Kansai Nerolac's (KNL) strong volume growth of ~16% YoY (vs. Idirect estimate: ~10%) was led by strong performance in both decorative and industrial segments. A marginal growth in realisation by ~1% YoY (largely into decorative paint category) was to offset higher raw material prices. For FY18, KNL has taken a price hike of ~4% in the decorative paint category (in two phases). Also, according to the management, it would take price hike in the industrial paint category after consultation with top clients. KNL expects double digit volume growth across the paint category led by...

ICICI Securities Ltd | Retail Equity Research Kansai Nerolac's (KNL) strong volume growth of 14.5% YoY (vs. Idirect estimate: 11%) was led by both decorative and industrial segment equally. This coupled with price hike of ~2% YoY (largely into decorative paint category) was to offset higher raw material prices. For FY18, the company has taken a price hike of ~4% in the decorative paint category (in two phases). Also, KNL has decided to take a price hike in the industrial paint category on a case to case basis. The company expects double digit volume growth across the...

We recently interacted with the management of Kansai Nerolac Paints (KNPL) to understand the developments in the company and in the sector. KNPL has been experiencing double digit volume YoY growth across segments since the last 12 quarters surpassing the performance of Asian Paints and Berger. The strong out-performance is on the back of: 1) Strong volume growth witnessed by the paint sector; 2) New and innovative product launches by the company; 3) Strong distribution network of the company (20000+ dealers and 102 depots);4) Heavy promotion through...

KNPL has been experiencing double digit volume YoY growth across segments since the last 12 quarters surpassing the performance of Asian Paints and Berger. The strong out-performance is on the back of: 1) Strong volume growth witnessed by the paint sector;2) New and innovative product launches by the company; 3) Strong distribution network of the company (20000+ dealers and 102 depots);4) Heavy promotion through multiple media platforms and 5) Sales aggression exhibited by the company. Management (and we agree) expect the growth momentum to continue in medium term as well with increasing disposable income,...

ICICI Securities Ltd | Retail Equity Research Kansai Nerolac (KNL) continued recorded strong volume growth of ~13% YoY (I-direct estimate) led by ~14%, ~11% YoY volume growth in decorative, industrial segment, respectively. The volume growth was largely on account of lower base (due to demonetisation) and in-spite of early diwali sales during Q2. However, despite rising raw material prices company has refrained to take price hike during Q3FY18, resulting flattish realisation growth....

Kansai Nerolac Paints Ltd Q3FY18 results comment Revenue fell by 1.94% to Rs. 1139.27 Cr in Q3FY18 when compared to the previous quarter

Kansai Nerolac Paints Limited (KNPL) is a paint company. The Company offers a range of products, including decorative, Automotive Coatings and Performance coatings. The Company has coating solutions across the Decorative, Wood Coatings, General Industrial, High Performance Coatings, Powder Coatings, Automotive and Auto Refinish market segments. The Company serves its customers through a network of approximately four manufacturing facilities located at Lote in Maharashtra, Bawal in Haryana, Jainpur in Uttar Pradesh and Hosur in Tamil Nadu and over hundred strategically located depots. The Company has a joint venture in Nepal with Kansai...

Revenue decreased by 0.72% to Rs. 1161.82 Cr in Q2FY18 when compared to the previous quarter Revenue decreased by 0.72% to Rs. 1161.82 Cr in Q2FY18 when compared to the previous quarter

Post GST, Kansai Nerolac (KNL) recorded strong volume growth of ~18% YoY (I-direct estimate) led by ~22%, ~10% YoY volume growth in decorative, industrial segment, respectively. This was largely led by restocking of inventory at dealer's level and betterthan-expected performance by automobile players in Q2FY18. However, during the period, the company passed on benefit to its dealers in terms of price cut to the tune of ~2% YoY. KNL recorded sales growth of ~16% YoY to | 1164.4 crore (adjusted with GST) Gross margin during the period declined ~250 bps YoY as the...

Revenue increased by 24.68% to Rs. 1170.23 Cr in Q1FY18 when compared to the previous quarter. Revenue increased by 24.68% to Rs. 1170.23 Cr in Q1FY18 when compared to the previous quarter.