Kansai Nerolac Paints Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Despite demonetisation, Kansai recorded sales growth of 7% YoY to ~| 1009 crore (vs. I-direct estimate: | 890 crore) led by strong volume growth of ~9% YoY. We believe the company had launched various trade schemes to push products at the dealer's level The EBITDA margin for the quarter increased 332 bps YoY at 18% (vs. I-direct estimate: 13.3%) with a 401 bps saving in raw material cost. The company continues to benefit from benign raw material...

ICICI Securities Ltd | Retail Equity Research Revenues increased 5.7% YoY to ~| 1002.1 crore (vs. I-direct estimate: | 1082.5 crore) largely on account of volume growth as the company has taken a price cut to pass on the benefit of lower raw material prices to its customers. Our estimates suggest a volume growth of ~12% & realisation dip of ~7% The EBITDA margin for the quarter increased 340 bps YoY at 19.8% (vs. I-direct estimate: 17.0%) with a 640 bps saving in raw material...

Kansai Nerolac reported a good set of numbers for 1QFY17 with a 7.4% growth in revenue at Rs.10.4 bn vs Rs.9.7 bn YoY. The company reported 236 bps expansion in EBITDA margin to 17.8 with EBITDA growth at 24% YoY. Recurring PAT increased by 33% to Rs.1265 mn from Rs.952 mn YoY. The company's strong performance driven by...

ICICI Securities Ltd | Retail Equity Research Kansai Nerolac (KNL) reported Q1FY17 results with earnings growth of 33% YoY mainly driven by stronger margin expansion of 236 bps YoY. The company reported topline growth of ~7% YoY with ~11% volume growth as KNL has taken price cuts to pass on the benefit of raw material decline. The stronger volume growth can be attributed to a revival in demand in the decorative paint segment Operating margins expanded 236 bps to 17.8% with raw material...

Painting a bright future; initiate with BUY We initiate coverage on KNPL with a BUY rating and a price target of Rs.362 implying 23% upside. Kansai Nerolac Paints Ltd (KNPL) has a 60%...

ICICI Securities Ltd | Retail Equity Research Kansai Nerolac (KNL) reported robust Q4FY16 results with earnings growth of 33% YoY mainly driven by stronger margin expansion of...

Kansai Nerolac Paints (KNPL) is the second largest coating company in India and a market leader in Industrial Coatings, of which automotive paints constitute the majority. It came into existence in the year 1920 as Gahagan Paints and Varnishes Co. Ltd. and through various changes became a wholly owned subsidiary of Kansai Paints, Japan in 1999. It derives ~55% of its revenues from decorative paint and 45% from industrial paint. Within industrial paint, 75% comes from automotive coatings. KNPL has 4 manufacturing facilities with a capacity of 350,000 MTPA and a network of 94 depots. With the RBI's latest rate cut of 50 bps, we expect a pickup in automobile sales, aided by a slew of new launches. With expansion plans in...

Kansai Nerolac Paints Ltd. (KNPL) is a market leader in industrial paints withautomotive coating forming majority of the total industrial paints sales. We expect revival in Indian automobile demand due to falling crude oil prices, new product launches, expected interest rate cuts and festive season in second half of the fiscal year. KNPL is the largest beneficiary in organized industrial paints segment due to uptick in Indian automotive demand.