Kansai Nerolac Paints
Market Cap
₹286.5b
Last Updated
2020/11/24 12:55 UTC
Data Sources
Company Financials +
Executive Summary
Kansai Nerolac Paints Limited manufactures and sells paints and varnishes, enamels, or lacquers in India. More Details
Rewards
Risk Analysis
No risks detected for 500165 from our risk checks.
Snowflake Analysis
Excellent balance sheet with moderate growth potential.
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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
| 500165 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | 2.4% | 2.3% |
| 30 Day | 4.5% | 6.4% | 8.9% |
| 90 Day | 13.2% | 7.8% | 10.2% |
| 1 Year | 3.0%1.9% | 30.1%27.0% | 11.0%8.9% |
| 3 Year | 9.5%7.1% | 41.4%34.4% | 6.2%1.0% |
| 5 Year | 130.6%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%).
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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.
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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
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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).
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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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairman & MD | 16.58yrs | ₹78.25m | no data | |
| CFO & Director of Finance | no data | ₹11.32m | no data | |
| Compliance Officer & Secretary | no data | ₹8.45m | no data | |
| Whole-Time Director | 2.58yrs | ₹12.86m | 0.0025% ₹ 7.2m | |
| Senior Vice President of Corporate Planning & International Operations | 0.83yr | ₹6.88m | no data | |
| Vice President of Technical | 1.83yrs | no data | no data | |
| Vice President of HR | no data | no data | no data | |
| Senior Vice President of Manufacturing | no data | ₹8.22m | no data | |
| Chief Risk Officer and Director of Corporate Planning | no data | ₹6.96m | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairman & MD | 16.58yrs | ₹78.25m | no data | |
| Whole-Time Director | 2.58yrs | ₹12.86m | 0.0025% ₹ 7.2m | |
| Independent Chairman of the Board | 6.42yrs | ₹4.30m | no data | |
| Non-Executive & Independent Director | 13.08yrs | ₹3.83m | no data | |
| Non-Executive Director | 0.50yr | no data | no data | |
| Non-Executive Director | 1.33yrs | no data | no data | |
| Non-Executive Director | 0.50yr | no data | no data | |
| Independent Non-Executive Director | 1.33yrs | ₹225.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 500165 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Feb 1995 |
| KANSAINER | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Feb 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/24 12:55 |
| End of Day Share Price | 2020/11/24 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.