Accumulate Kansai Nerolac Paints; target of Rs 248: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Kansai Nerolac Paints with a target price of Rs 248 in its research report dated February 26, 2026.

Broker Research

February 27, 2026 / 12:06 IST

Accumulate

Prabhudas Lilladher's research report on Kansai Nerolac Paints

We attended the Kansai India business strategy call (Part of Kansai Paint Japan, call), where the management highlighted increased focus towards Industrial paints/Auto paints (~55% share) segment with revenue share to increase incrementally in medium term. Industrial paints will be led by sustained high growth in Automotive Paints, Auto refinishes, Powder coatings and strong traction and new launches backed by innovation, Policy tailwinds and Kansai’s technological edge across emerging segments. Decorative business is expected to recover in the medium term. Although competitive intensity is expected to remain high, KNPL remains confident of stability over the next 1-2 quarters led by improving demand scenario. KNPL’s gave a constructive outlook with focus on industrial paints and automotive segment while steady growth is expected in decorative paints. KNPL remains confident of growing faster than Industry growth. We expect little scope to increase margins as lower margin Industrial Paints have better growth prospects and decorative outlook is uncertain in near term.

Outlook

We expect 7.9% EPS CAGR over FY26-28. KNPL is currently trading at 20.7x FY28 EPS, which factors in most negatives, however the stock lacks any immediate triggers. Retain Accumulate with TP of Rs248 (No change).

For all recommendations report, click here