ICICI Direct's research report on Kansai Nerolac Paints
Kansai is the global leader in industrial coatings (automotive). However, in the last 10 years, it has increased its decorative paint mix to 55% of its total topline. Currently, Kansai is the third largest decorative paint player in India. Strong distribution network of ~28,000 dealers across the country with 75-80% penetration of tinting machine • In the last two years, KNL has increased its total paint manufacturing capacity by 28% to 5.3 lakh tonnes at an investment of ~Rs 1100 crore.
We change our rating on stock from HOLD to REDUCE. We value Kansai at Rs 360 i.e. 30x P/E on FY24E EPS.
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