Kansai Nerolac may touch Rs 280: Jagannadham Thunuguntla

Jagannadham Thunuguntla, Head of Research at Karvy Stock Broking told CNBC-TV18, "Kansai Nerolac Paints is a clear leader in the industrial paints and if automotive demand picks up, one of the natural beneficiaries will be Kansai Nerolac. Thanks to crude oil fall, crude oil and oil derivatives contribute about 45 percent of raw material cost. So paint businesses are clear beneficiaries. Above that the innovation is helping the decorative segment of the paints business." "With very healthy EBITDA margins and returns on equity, the company has been expanding quite strategically. We feel that Kansai Nerolac is a good theme; we are giving a target of about Rs 280," he added.