ICICI Direct's research report on Kansai Nerolac Paints
Kansai Nerolac (KNL) is global leader in industrial coatings (auto). However, in the last 10 years, it has increased its decorative paint mix to 55% of its total topline. Currently, KNL 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.
Outlook
We maintain our HOLD rating on the stock. We value Kansai at Rs 515 i.e. 40x P/E on FY24E EPS.
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