Paints/Varnish · KNPL
Building Materials - Paints
from 204 today
Kansai Nerolac Paints' performance was broadly in line with estimates. Management expects stable EBITDA margins supported by price hikes and easing input-cost inflation, and we recommend BUY with a target price of INR 316.
We increase our FY27/FY28 EPS estimates by 4.5%/2.0% led by healthy H2 outlook driven by strong festive season, EBITDA margin guidance of 13-14%, and sustained healthy traction in auto/industrial paints. KNPL trades at inexpensive valuations and we retain Accumulate with a target price of Rs259.
Decorative underperformance persists as KNPL's volume growth lags peers amid high competitive intensity, while industrial growth is supported by auto demand. With no visible fundamental triggers for breakout volume growth and likely range-bound margins, we maintain our Hold rating.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
