Kansai Nerolac Paints Ltd

Ticker: KANSAINER
Decent 72/100

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Investing Reference

Price
247.96
Market Cap
20047.89
Debt/Equity
0.0463
ROE %
19.044
PB
3.1303
Promoter %
74.979
Pledge %
0.000
1Y Rev Growth %
0.334
5Y Rev Growth %
10.025
NP Margin %
11.978
NP Margin 5Y Avg %
8.817

Trading Reference

1M Return %
1.319
6M Return %
-2.665
1Y Return %
-13.027
% Away 52W High
16.813
% Away 52W Low
13.639
Daily Volume
207433
Investment Verdict
Hold
Score 68/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 22/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

Summary

Kansai Nerolac Paints Ltd shows strong market positioning with steady growth potential, despite facing some challenges.

✅ Positives
  • Strong brand recognition in the paint industry
  • Consistent revenue growth over the past years
  • Expanding product portfolio and innovation

⚠️ Negatives
  • Rising raw material costs impacting margins
  • Intense competition in the paint sector
  • Dependence on cyclical construction industry

Verdict
Moderate growth potential with some risks.
Recommendation: Consider buying on dips.
Upside Probability: 20%   |   Downside Probability: 15%
Last generated: 30/10/2025

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Business Overview

Kansai Nerolac Paints Ltd is a leading paint manufacturer in India, known for its innovative and eco-friendly solutions. Catering to both residential and industrial sectors, it offers a wide range of high-quality paints and coatings. The brand emphasizes sustainability and durability, making it a trusted choice for homeowners and businesses alike. With a strong commitment to customer satisfaction and continuous improvement, Kansai Nerolac plays a vital role in enhancing the aesthetics and protection of spaces.

  • Established leader in the Indian paint industry
  • Wide range of eco-friendly products
  • Focus on innovation and quality
  • Trusted by homeowners and industries
  • Strong commitment to sustainability

Investment Thesis

Kansai Nerolac Paints Ltd stands out in the Indian paint industry due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. These factors position the company for sustainable growth and make it a compelling investment opportunity.

  • Strong backing from Kansai Paints, ensuring stability and strategic support.
  • Significant growth potential in digital services, enhancing customer engagement.
  • Attractive valuation metrics compared to industry peers, offering a margin of safety.
  • Consistent track record of innovation and product development.
  • Expanding market presence in both urban and rural segments.

Opportunity vs Risk

Opportunities
  • Growing demand for eco-friendly paints
  • Expansion in rural markets
  • Strong brand recognition
  • Innovative product launches
  • Strategic partnerships with builders
Risks ⚠️
  • Volatile raw material prices
  • Intense competition in market
  • Economic slowdown impact
  • Regulatory changes affecting operations
  • Dependency on construction sector

Peer Perspective

Kansai Nerolac Paints trades at a slight premium to Asian Paints but at a discount to Berger Paints. A sustained improvement in margins and consistent growth could trigger a rerating in its valuation.

Future Outlook

Kansai Nerolac Paints Ltd is well-positioned for growth, driven by strong demand in the decorative segment; however, successful execution of cost control measures will be crucial to maintain margins and enhance profitability.

AI FAQs for Retail Users

  • Q: What does Kansai Nerolac Paints Ltd do?
    A: Kansai Nerolac Paints Ltd manufactures and sells a variety of paints and coatings in India.
  • Q: Is Kansai Nerolac a good investment?
    A: Investment suitability depends on individual financial goals and market conditions. Research thoroughly before investing.
  • Q: What are the key products of Kansai Nerolac?
    A: Key products include decorative paints, industrial coatings, and automotive paints.
  • Q: How has Kansai Nerolac performed recently?
    A: Recent performance can vary; check financial reports for the latest updates.
  • Q: What factors affect Kansai Nerolac's stock price?
    A: Factors include market demand, raw material costs, and overall economic conditions.
📊 Stock Investment Checklist (100 Points)
Kansai Nerolac Paints Ltd • Updated: 2025-09-17 07:12:23
  • 10
    Business
    High
    The paint industry is growing with increasing demand for decorative and industrial paints.
  • 10
    Growth
    High
    Consistent revenue growth over the past few years, but profit margins have shown volatility.
  • 10
    Profitability
    High
    ROE and ROCE are healthy, but cash flow has been inconsistent.
  • 8
    Valuation
    High
    P/E and P/B ratios are higher than industry averages, indicating potential overvaluation.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity ratios are slightly below industry norms.
  • 9
    Governance
    High
    Promoter holding is strong, but there are concerns about pledging.
  • 6
    Drivers
    Good
    Growth drivers exist, but execution risks remain due to competition.
  • 5
    Technicals
    Good
    Market sentiment is mixed with low liquidity and fluctuating price action.
Final Score & Verdict
Score 72 / 100 • Decent
Kansai Nerolac Paints Ltd shows decent potential with a strong market position, but faces challenges in profitability and valuation metrics.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 75/100
  • Growth Potential: 70/100
  • Profitability: 80/100
  • Governance: 65/100
  • Market Confidence: 72/100


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