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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

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/VarnishesNerolac House, 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. Hitoshi NishibayashiNon Executive Director
Mr. Shigeki TakaharaNon Executive Director
Mr. Takashi TomiokaNon Executive Director
Ms. Sonia SinghInd. Non-Executive Director
Mr. Bhaskar BhatInd. Non-Executive Director

Kansai Nerolac Paints Ltd. Share Price Update

Share PriceValue
Today₹318.00
Previous Day₹316.85

Basic Stock Data of Kansai Nerolac Paints Ltd

Market Cap 24,494 Cr.
Current Price 303
High / Low357/247
Stock P/E37.8
Book Value 65.7
Dividend Yield0.59 %
ROCE14.5 %
ROE10.7 %
Face Value 1.00

Data Source: screener.in

Competitors of Kansai Nerolac Paints Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Shalimar Paints Ltd 1,645 Cr. 196226/133 37.90.00 %4.00 %10.3 % 2.00
Berger Paints India Ltd 66,342 Cr. 569680/45858.7 41.50.47 %23.8 %20.4 % 1.00
Sirca Paints India Ltd 2,023 Cr. 369444/28841.8 52.10.40 %25.3 %18.8 % 10.0
Asian Paints Ltd 2,87,409 Cr. 2,9963,568/2,70052.7 1730.85 %34.4 %27.7 % 1.00
Industry Average17.75 Cr28438.376.130.43%21.88%19.3%3.5

Kansai Nerolac Paints Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1,3831,5931,4601,4031,6201,8101,5372,0511,9311,8271,7342,1571,957
Expenses1,1151,2881,2461,2121,4571,5981,4531,7961,7321,6311,5651,8251,683
Operating Profit26930421319116321284255199195168332273
OPM %19%19%15%14%10%12%5%12%10%11%10%15%14%
Other Income5141110610-15471067822
Interest5587778867778
Depreciation39404842424343434546464747
Profit before tax22927416815212017232208152149125956240
Tax %27%25%27%27%27%27%40%27%27%27%23%23%27%
Net Profit168204124111871251915211110996734175
EPS in Rs2.082.521.541.411.141.580.311.931.401.361.169.132.19

Kansai Nerolac Paints Ltd Quarterly Chart

Kansai Nerolac Paints Ltd Profit & Loss

MonthMar 2009Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,3692,8013,1203,5053,7674,0534,6585,4245,2805,0746,3697,5437,674
Expenses1,2192,4632,7533,0543,1823,3153,8644,6724,4764,2115,7206,7256,705
Operating Profit150338367451585737794753804863649818968
OPM %11%12%12%13%16%18%17%14%15%17%10%11%13%
Other Income33132102256398716126382526718
Interest2121001102124292929
Depreciation38476668687077106142165170180186
Profit before tax1434223104041,0797657876976677124766351,471
Tax %29%30%33%32%16%33%35%36%23%26%28%26%
Net Profit1022942092759025105144485165263434681,115
EPS in Rs1.273.632.573.3911.156.296.365.606.446.554.445.8613.84
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:10%
3 Years:13%
TTM:6%
Compounded Profit Growth
10 Years:8%
5 Years:-1%
3 Years:-3%
TTM:65%
Stock Price CAGR
10 Years:16%
5 Years:1%
3 Years:-6%
1 Year:11%
Return on Equity
10 Years:14%
5 Years:12%
3 Years:11%
Last Year:11%

Kansai Nerolac Paints Ltd Balance Sheet

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 2009Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 20322019530539235136010059564625408
Cash from Investing Activity -119-142-113-239144-557-16289-376-453250-227
Cash from Financing Activity -42-77-87-87-92-216-192-223-141-274-309-133
Net Cash Flow420-6-21444-4226-3478-81-3549

Kansai Nerolac Paints Ltd Financial Efficiency Indicators

MonthMar 2009Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days565655545353555154696360
Inventory Days771141259590123107132127158153134
Days Payable11082845685989082751209279
Cash Conversion Cycle23899693587872101106107123115
Working Capital Days2550565248806579859310288
ROCE %18%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

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%
FIIs3.73%3.72%3.40%3.57%3.55%3.28%3.45%3.32%3.88%4.21%4.27%4.28%
DIIs12.86%11.58%13.34%13.21%13.20%13.39%13.26%13.34%12.82%12.29%11.90%11.84%
Public8.42%9.71%8.27%8.23%8.26%8.34%8.28%8.34%8.31%8.49%8.82%8.88%
No. of Shareholders58,03366,24870,69272,10976,90982,89283,34184,11383,76193,8711,11,1971,14,047

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)
Canara Robeco Emerging Equities48227920.82154.45
Franklin India Flexi Cap Fund36000000.9115.29
Nippon India Growth Fund35100000.53112.41
Nippon India Multi Cap Fund27750000.3988.87
Kotak Multicap Fund27724381.2588.79
Aditya Birla Sun Life MNC Fund - Div23043432.1273.8
Aditya Birla Sun Life MNC Fund - Gr23043432.1273.8
Nippon India Vision Fund16524981.4152.92
Franklin India Taxshield16500000.9552.84
LIC MF Large & Mid Cap Fund12338651.6739.51

Kansai Nerolac Paints Ltd ROCE Trend

Kansai Nerolac Paints Ltd EPS Trend

Kansai Nerolac Paints Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)8.796.669.839.678.40
Diluted EPS (Rs.)8.786.669.839.678.40
Cash EPS (Rs.)12.039.5212.8212.2110.28
Book Value[Excl.RevalReserv]/Share (Rs.)84.6277.0475.8870.1863.77
Book Value[Incl.RevalReserv]/Share (Rs.)84.6277.0475.8870.1863.77
Revenue From Operations / Share (Rs.)139.97118.1994.1697.98100.66
PBDIT / Share (Rs.)15.6612.5216.7315.4015.09
PBIT / Share (Rs.)12.329.3713.6612.7613.11
PBT / Share (Rs.)11.788.8413.2212.3812.93
Net Profit / Share (Rs.)8.696.379.769.578.31
NP After MI And SOA / Share (Rs.)8.796.669.839.678.40
PBDIT Margin (%)11.1810.5917.7615.7114.98
PBIT Margin (%)8.807.9214.5013.0213.02
PBT Margin (%)8.417.4714.0412.6312.84
Net Profit Margin (%)6.215.3810.369.768.25
NP After MI And SOA Margin (%)6.275.6310.439.868.34
Return on Networth / Equity (%)10.448.6813.0713.8513.25
Return on Capital Employeed (%)13.8311.5217.1417.3419.81
Return On Assets (%)7.506.289.5710.6610.02
Long Term Debt / Equity (X)0.000.000.000.010.00
Total Debt / Equity (X)0.030.040.040.040.02
Asset Turnover Ratio (%)1.201.090.921.091.23
Current Ratio (X)2.522.442.562.712.44
Quick Ratio (X)1.381.211.601.611.27
Inventory Turnover Ratio (X)2.802.942.572.673.45
Dividend Payout Ratio (NP) (%)11.3778.8344.7626.8930.94
Dividend Payout Ratio (CP) (%)8.2453.5134.1121.1325.06
Earning Retention Ratio (%)88.6321.1755.2473.1169.06
Cash Earning Retention Ratio (%)91.7646.4965.8978.8774.94
Interest Coverage Ratio (X)29.1023.6037.9739.6981.55
Interest Coverage Ratio (Post Tax) (X)17.1513.0023.1425.6745.90
Enterprise Value (Cr.)20861.3825293.7032447.6320812.5324665.96
EV / Net Operating Revenue (X)2.773.976.393.944.55
EV / EBITDA (X)24.7237.4835.9925.0830.34
MarketCap / Net Operating Revenue (X)2.763.956.383.944.54
Retention Ratios (%)88.6221.1655.2373.1069.05
Price / BV (X)4.596.097.995.537.21
Price / Net Operating Revenue (X)2.763.956.383.944.54
EarningsYield0.020.010.010.020.01

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 of Kansai Nerolac Paints Ltd Stock

Fair Value: ₹267.30

The stock is overvalued by 11.78% compared to the current price ₹303

*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 18.50%, which is a positive sign.
  2. The company has higher reserves (2,918.54 cr) compared to borrowings (119.38 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 is trading at a high valuation with an average P/B ratio of 12.24 and average Dividend Yield of 11.45%.
  2. The stock has a high average Working Capital Days of 68.58, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 88.42, which may not be favorable.

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