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Last Updated on: 27 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500165 | NSE: KANSAINER

Fundamental Analysis of Kansai Nerolac Paints Ltd

About the Company - Kansai Nerolac Paints Ltd

Kansai Nerolac Paints Ltd. is a Public Limited Listed company incorporated on 02/09/1920 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24202MH1920PLC000825 and registration number is 000825. Currently Company is involved in the business activities of Manufacture of paints and varnishes, enamels or lacquers. Company’s Total Operating Revenue is Rs. 5948.90 Cr. and Equity Capital is Rs. 53.89 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Paints/Varnishes28th Floor, A-wing, Marathon Futurex, Mumbai Maharashtra 400013investor@nerolac.com
http://www.nerolac.com
Management
NamePosition Held
Mr. Pradip Panalal ShahChairman & Ind.Dire (Non-Exe)
Mr. Anuj JainManaging Director
Mr. Bhaskar BhatInd. Non-Executive Director
Mr. Pravin ChaudhariNon Executive Director
Ms. Sonia SinghInd. Non-Executive Director
Mr. Takashi TomiokaNon Executive Director
Mr. Hitoshi NishibayashiNon Executive Director

Basic Stock Data of Kansai Nerolac Paints Ltd

Last Updated: July 26, 2024, 10:27 pm

Market Cap 22,263 Cr.
Current Price 275
High / Low357/252
Stock P/E34.4
Book Value 69.1
Dividend Yield0.91 %
ROCE16.6 %
ROE12.8 %
Face Value 1.00
PEG Ratio1.97

Data Source: screener.in

Competitors of Kansai Nerolac Paints Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sirca Paints India Ltd 1,921 Cr. 352444/28237.4 56.30.43 %24.1 %17.9 % 10.0
Shalimar Paints Ltd 1,203 Cr. 144226/134 47.00.00 %12.3 %19.8 % 2.00
Kansai Nerolac Paints Ltd 22,263 Cr. 275357/25234.4 69.10.91 %16.6 %12.8 % 1.00
Berger Paints India Ltd 63,245 Cr. 542680/43954.4 46.10.65 %27.5 %23.5 % 1.00
Asian Paints Ltd 2,82,885 Cr. 2,9503,423/2,67055.7 1951.13 %37.5 %31.4 % 1.00
Industry Average87,313.50 Cr997.0049.1786.100.55%25.35%23.15%3.50

Kansai Nerolac Paints Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,5931,4601,4031,6201,8101,5372,0511,9311,8271,7342,1571,9571,919
Expenses1,2881,2461,2121,4571,5981,4531,7961,7321,6311,5651,8251,6831,675
Operating Profit30421319116321284255199195168332273244
OPM %19%15%14%10%12%5%12%10%11%10%15%14%13%
Other Income141110610-1547106782220
Interest5877788677787
Depreciation40484242434343454646474748
Profit before tax27416815212017232208152149125956240208
Tax %25%27%27%27%27%40%27%27%27%23%23%27%27%
Net Profit204124111871251915211110996734175152
EPS in Rs2.521.541.411.141.580.311.931.401.361.169.132.191.91

Last Updated: July 10, 2024, 6:52 pm

Kansai Nerolac Paints Ltd Quarterly Chart

Kansai Nerolac Paints Ltd Profit & Loss

Last Updated: July 10, 2024, 6:52 pm

MonthMar 2009Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,3692,8013,1203,5053,7674,0534,6585,4245,2805,0746,3697,5437,766
Expenses1,2192,4632,7533,0543,1823,3153,8644,6724,4764,2115,7206,7256,749
Operating Profit1503383674515857377947538048636498181,017
OPM %11%12%12%13%16%18%17%14%15%17%10%11%13%
Other Income33132102256398716126382526730
Interest2121001102124292929
Depreciation38476668687077106142165170180188
Profit before tax1434223104041,0797657876976677124766351,530
Tax %29%30%33%32%16%33%35%36%23%26%28%26%
Net Profit1022942092759025105144485165263434681,158
EPS in Rs1.273.632.573.3911.156.296.365.606.446.554.445.8614.39
Dividend Payout %31%20%29%28%18%32%27%31%33%53%37%31%

Kansai Nerolac Paints Ltd Profit & Loss Yearly Chart

Kansai Nerolac Paints Ltd Growth

Compounded Sales Growth
10 Years:10%
5 Years:8%
3 Years:15%
TTM:3%
Compounded Profit Growth
10 Years:12%
5 Years:8%
3 Years:8%
TTM:40%
Stock Price CAGR
10 Years:10%
5 Years:0%
3 Years:-13%
1 Year:-15%
Return on Equity
10 Years:14%
5 Years:12%
3 Years:11%
Last Year:13%

Last Updated: July 24, 2024, 6:09 pm

Kansai Nerolac Paints Ltd Balance Sheet

Last Updated: July 10, 2024, 6:52 pm

MonthMar 2009Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital27545454545454545454545481
Reserves6361,2331,3721,5482,4562,7613,0783,3623,7063,9994,0784,4805,232
Borrowings94846851462935108178173203160323
Other Liabilities3287157867206857939629949451,3071,3741,6131,484
Total Liabilities1,0852,0872,2802,3733,2403,6364,1304,5184,8845,5335,7096,3067,120
Fixed Assets2377869229169379571,0361,4651,9061,9121,9962,1082,205
CWIP3612348444215434631616920722511379
Investments3035349208539531521197306669211501972
Other Assets5091,1241,2611,2051,7221,9932,2282,5402,5022,7453,2783,5843,864
Total Assets1,0852,0872,2802,3733,2403,6364,1304,5184,8845,5335,7096,3067,120

Kansai Nerolac Paints Ltd Reserves and Borrowings Chart

Kansai Nerolac Paints Ltd Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 22019530539235136010059564625408903
Cash from Investing Activity -142-113-239144-557-16289-376-453250-227-590
Cash from Financing Activity -77-87-87-92-216-192-223-141-274-309-133-249
Net Cash Flow0-6-21444-4226-3478-81-354964

Kansai Nerolac Paints Ltd Free Cash Flow

MonthMar 2009Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow150.00254.00299.00400.00539.00708.00759.00645.00626.00690.00446.00531.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Kansai Nerolac Paints Ltd Free Cash Flow Chart

Kansai Nerolac Paints Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days565554535355515469636062
Inventory Days1141259590123107132127158153134122
Days Payable8284568598908275120927979
Cash Conversion Cycle899693587872101106107123115105
Working Capital Days50565248806579859310288145
ROCE %22%25%25%26%25%20%18%18%11%14%

Kansai Nerolac Paints Ltd Financial Efficiency Indicators Chart

Kansai Nerolac Paints Ltd Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%
FIIs3.40%3.57%3.55%3.28%3.45%3.32%3.88%4.21%4.27%4.28%4.72%5.09%
DIIs13.34%13.21%13.20%13.39%13.26%13.34%12.82%12.29%11.90%11.84%11.61%10.72%
Public8.27%8.23%8.26%8.34%8.28%8.34%8.31%8.49%8.82%8.88%8.68%9.18%
No. of Shareholders70,69272,10976,90982,89283,34184,11383,76193,8711,11,1971,14,0471,14,0081,36,327

Kansai Nerolac Paints Ltd Shareholding Pattern Chart

No. of Kansai Nerolac Paints Ltd Shareholders

Kansai Nerolac Paints Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Canara Robeco Emerging Equities4,822,7920.83164.821,650,0002024-07-25192.29%
Franklin India Flexi Cap Fund3,600,0000.87123.031,650,0002024-07-25118.18%
Nippon India Growth Fund3,510,0000.49119.951,650,0002024-07-25112.73%
Kotak Multicap Fund2,797,4381.0795.61,650,0002024-07-2569.54%
Nippon India Multi Cap Fund2,775,0000.3794.841,650,0002024-07-2568.18%
Aditya Birla Sun Life MNC Fund - Div1,954,3431.8666.791,650,0002024-07-2518.45%
Aditya Birla Sun Life MNC Fund - Gr1,954,3431.8666.791,650,0002024-07-2518.45%
Franklin India ELSS Tax Saver Fund1,650,0000.9356.391,650,0002024-07-250%
Sundaram Mid Cap Fund1,556,5840.5353.21,650,0002024-07-25-5.66%
Sundaram Mid Cap Fund - Institutional Plan1,556,5840.5353.21,650,0002024-07-25-5.66%

Kansai Nerolac Paints Ltd ROCE Trend

Kansai Nerolac Paints Ltd EPS Trend

Kansai Nerolac Paints Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)14.668.796.669.839.67
Diluted EPS (Rs.)14.658.786.669.839.67
Cash EPS (Rs.)16.9012.039.5212.8212.21
Book Value[Excl.RevalReserv]/Share (Rs.)69.2684.6277.0475.8870.18
Book Value[Incl.RevalReserv]/Share (Rs.)69.2684.6277.0475.8870.18
Revenue From Operations / Share (Rs.)96.50139.97118.1994.1697.98
PBDIT / Share (Rs.)13.8515.6612.5216.7315.40
PBIT / Share (Rs.)11.4912.329.3713.6612.76
PBT / Share (Rs.)19.3111.788.8413.2212.38
Net Profit / Share (Rs.)14.558.696.379.769.57
NP After MI And SOA / Share (Rs.)14.668.796.669.839.67
PBDIT Margin (%)14.3511.1810.5917.7615.71
PBIT Margin (%)11.918.807.9214.5013.02
PBT Margin (%)20.018.417.4714.0412.63
Net Profit Margin (%)15.076.215.3810.369.76
NP After MI And SOA Margin (%)15.196.275.6310.439.86
Return on Networth / Equity (%)21.2310.448.6813.0713.85
Return on Capital Employeed (%)15.7713.8311.5217.1417.34
Return On Assets (%)15.997.506.289.5710.66
Long Term Debt / Equity (X)0.000.000.000.000.01
Total Debt / Equity (X)0.020.030.040.040.04
Asset Turnover Ratio (%)1.141.261.090.921.09
Current Ratio (X)3.122.522.442.562.71
Quick Ratio (X)2.011.381.211.601.61
Inventory Turnover Ratio (X)2.672.912.942.572.67
Dividend Payout Ratio (NP) (%)12.2711.3778.8344.7626.89
Dividend Payout Ratio (CP) (%)10.578.2453.5134.1121.13
Earning Retention Ratio (%)87.7388.6321.1755.2473.11
Cash Earning Retention Ratio (%)89.4391.7646.4965.8978.87
Interest Coverage Ratio (X)38.3329.1023.6037.9739.69
Interest Coverage Ratio (Post Tax) (X)18.6217.1513.0023.1425.67
Enterprise Value (Cr.)21077.0820861.3825293.7032447.6320812.53
EV / Net Operating Revenue (X)2.702.773.976.393.94
EV / EBITDA (X)18.8224.7237.4835.9925.08
MarketCap / Net Operating Revenue (X)2.722.763.956.383.94
Retention Ratios (%)87.7288.6221.1655.2373.10
Price / BV (X)3.804.596.097.995.53
Price / Net Operating Revenue (X)2.722.763.956.383.94
EarningsYield0.050.020.010.010.02

Kansai Nerolac Paints Ltd Profitability Ratios (%)

Kansai Nerolac Paints Ltd Liquidity Ratios

Kansai Nerolac Paints Ltd Liquidity Ratios (%)

Kansai Nerolac Paints Ltd Interest Coverage Ratios (%)

Kansai Nerolac Paints Ltd Valuation Ratios

Fair Value

Fair Value: 307.03

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 11.65% compared to the current price 275

Intrinsic Value: 360.59

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 31.12% compared to the current price 275

Last 5 Year EPS CAGR: 17.45%

*Investments are subject to market risks

Strength and Weakness of Kansai Nerolac Paints Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 17.00%, which is a positive sign.
  2. The company has higher reserves (3,131.25 cr) compared to borrowings (128.17 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (4.23 cr) and profit (463.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 78.58, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 95.25, which may not be favorable.

Should I Buy Kansai Nerolac Paints Ltd Share Now?

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Kansai Nerolac Paints Ltd:
    1. ✓ Net Profit Margin: 15.07%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ✗ ROCE: 15.77% (Industry Average ROCE: 25.35%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✗ ROE%: 21.23% (Industry Average ROE: 23.15%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. ✓ Interest Coverage Ratio (Post Tax): 18.62
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. ✓ Quick Ratio: 2.01
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: 34.4 (Industry average Stock P/E: 49.17)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating: ★★★★☆

FAQ

What is the latest fair value of Kansai Nerolac Paints Ltd?

The latest fair value of Kansai Nerolac Paints Ltd is ₹307.03.

What is the Market Cap of Kansai Nerolac Paints Ltd?

The Market Cap of Kansai Nerolac Paints Ltd is 22,263 Cr..

What is the current Stock Price of Kansai Nerolac Paints Ltd as on 27 July 2024?

The current stock price of Kansai Nerolac Paints Ltd as on 27 July 2024 is 275.

What is the High / Low of Kansai Nerolac Paints Ltd stocks in FY 2024?

In FY 2024, the High / Low of Kansai Nerolac Paints Ltd stocks is 357/252.

What is the Stock P/E of Kansai Nerolac Paints Ltd?

The Stock P/E of Kansai Nerolac Paints Ltd is 34.4.

What is the Book Value of Kansai Nerolac Paints Ltd?

The Book Value of Kansai Nerolac Paints Ltd is 69.1.

What is the Dividend Yield of Kansai Nerolac Paints Ltd?

The Dividend Yield of Kansai Nerolac Paints Ltd is 0.91 %.

What is the ROCE of Kansai Nerolac Paints Ltd?

The ROCE of Kansai Nerolac Paints Ltd is 16.6 %.

What is the ROE of Kansai Nerolac Paints Ltd?

The ROE of Kansai Nerolac Paints Ltd is 12.8 %.

What is the Face Value of Kansai Nerolac Paints Ltd?

The Face Value of Kansai Nerolac Paints Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Kansai Nerolac Paints Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE