BSE:500165

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Kansai Nerolac Paints

Executive Summary

Kansai Nerolac Paints Limited manufactures and sells paints and varnishes, enamels, or lacquers in India. More Details

Rewards

Earnings are forecast to grow 21.35% per year

Risk Analysis

No risks detected for 500165 from our risk checks.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Kansai Nerolac Paints's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500165 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 500165's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

500165

2.4%

IN Chemicals

2.3%

IN Market


1 Year Return

1.9%

500165

27.0%

IN Chemicals

8.9%

IN Market

Return vs Industry: 500165 underperformed the Indian Chemicals industry which returned 25.5% over the past year.

Return vs Market: 500165 underperformed the Indian Market which returned 7.4% over the past year.


Shareholder returns

500165IndustryMarket
7 Day0.9%2.4%2.3%
30 Day4.5%6.4%8.9%
90 Day13.2%7.8%10.2%
1 Year3.0%1.9%30.1%27.0%11.0%8.9%
3 Year9.5%7.1%41.4%34.4%6.2%1.0%
5 Year130.6%121.8%153.9%135.9%53.0%41.5%

Long-Term Price Volatility Vs. Market

How volatile is Kansai Nerolac Paints's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Kansai Nerolac Paints undervalued compared to its fair value and its price relative to the market?

75.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500165 (₹539.7) is trading above our estimate of fair value (₹85.61)

Significantly Below Fair Value: 500165 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500165 is poor value based on its PE Ratio (75.4x) compared to the IN Chemicals industry average (16.3x).

PE vs Market: 500165 is poor value based on its PE Ratio (75.4x) compared to the Indian market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: 500165 is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: 500165 is overvalued based on its PB Ratio (7.7x) compared to the IN Chemicals industry average (1.2x).


Next Steps

Future Growth

How is Kansai Nerolac Paints forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500165's forecast earnings growth (21.4% per year) is above the savings rate (7.2%).

Earnings vs Market: 500165's earnings (21.4% per year) are forecast to grow slower than the Indian market (24.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500165's revenue (15.4% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: 500165's revenue (15.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500165's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has Kansai Nerolac Paints performed over the past 5 years?

-14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500165 has high quality earnings.

Growing Profit Margin: 500165's current net profit margins (8.7%) are lower than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: 500165's earnings have declined by 14.1% per year over the past 5 years.

Accelerating Growth: 500165's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500165 had negative earnings growth (-27.4%) over the past year, making it difficult to compare to the Chemicals industry average (-4.6%).


Return on Equity

High ROE: 500165's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is Kansai Nerolac Paints's financial position?


Financial Position Analysis

Short Term Liabilities: 500165's short term assets (₹26.8B) exceed its short term liabilities (₹10.5B).

Long Term Liabilities: 500165's short term assets (₹26.8B) exceed its long term liabilities (₹1.8B).


Debt to Equity History and Analysis

Debt Level: 500165's debt to equity ratio (4.6%) is considered satisfactory.

Reducing Debt: 500165's debt to equity ratio has increased from 2.4% to 4.6% over the past 5 years.

Debt Coverage: 500165's debt is well covered by operating cash flow (368.9%).

Interest Coverage: 500165's interest payments on its debt are well covered by EBIT (26.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Kansai Nerolac Paints's current dividend yield, its reliability and sustainability?

0.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500165's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.53%).

High Dividend: 500165's dividend (0.46%) is low compared to the top 25% of dividend payers in the Indian market (2.15%).


Stability and Growth of Payments

Stable Dividend: 500165's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500165's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44%), 500165's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500165's dividends in 3 years are forecast to be well covered by earnings (32.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Harishchandra Meghraj Bharuka (59 yo)

16.58yrs

Tenure

₹78,247,000

Compensation

Mr. Harishchandra Meghraj Bharuka, B.Com., AICWA, has been Managing Director of Kansai Nerolac Paints Limited since April 1, 2004 and has been its Vice Chairman since May 3, 2017. Mr. Bharuka serves as an ...


CEO Compensation Analysis

Compensation vs Market: Harishchandra Meghraj's total compensation ($USD1.05M) is above average for companies of similar size in the Indian market ($USD770.33K).

Compensation vs Earnings: Harishchandra Meghraj's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Harishchandra Meghraj Bharuka
Vice Chairman & MD16.58yrs₹78.25mno data
Prashant Pai
CFO & Director of Financeno data₹11.32mno data
G. Govindarajan
Compliance Officer & Secretaryno data₹8.45mno data
Anuj Jain
Whole-Time Director2.58yrs₹12.86m0.0025%
₹ 7.2m
Sudhir Rane
Senior Vice President of Corporate Planning & International Operations0.83yr₹6.88mno data
Laxman Nikam
Vice President of Technical1.83yrsno datano data
S. Raman
Vice President of HRno datano datano data
Abhijit Natoo
Senior Vice President of Manufacturingno data₹8.22mno data
Jason Gonsalves
Chief Risk Officer and Director of Corporate Planningno data₹6.96mno data

1.8yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 500165's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Harishchandra Meghraj Bharuka
Vice Chairman & MD16.58yrs₹78.25mno data
Anuj Jain
Whole-Time Director2.58yrs₹12.86m0.0025%
₹ 7.2m
Pradip Shah
Independent Chairman of the Board6.42yrs₹4.30mno data
Noel Tata
Non-Executive & Independent Director13.08yrs₹3.83mno data
Shigeki Takahara
Non-Executive Director0.50yrno datano data
Hitoshi Nishibayashi
Non-Executive Director1.33yrsno datano data
Takashi Tomioka
Non-Executive Director0.50yrno datano data
Sonia Singh
Independent Non-Executive Director1.33yrs₹225.00kno data

2.0yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 500165's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kansai Nerolac Paints Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kansai Nerolac Paints Limited
  • Ticker: 500165
  • Exchange: BSE
  • Founded: 1920
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹286.463b
  • Shares outstanding: 538.92m
  • Website: https://www.nerolac.com

Location

  • Kansai Nerolac Paints Limited
  • Nerolac House
  • Ganpatrao Kadam Marg
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500165BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
KANSAINERNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995

Biography

Kansai Nerolac Paints Limited manufactures and sells paints and varnishes, enamels, or lacquers in India. It offers interior and exterior decorative wall paints, wood coatings, metal enamel paints, and anc...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 12:55
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.