BSE:500165

Stock Analysis Report

Kansai Nerolac Paints

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

500165

-0.8%

IN Chemicals

0.5%

IN Market


1 Year Return

18.4%

500165

8.3%

IN Chemicals

5.6%

IN Market

Return vs Industry: 500165 exceeded the Indian Chemicals industry which returned 8.3% over the past year.

Return vs Market: 500165 exceeded the Indian Market which returned 5.6% over the past year.


Shareholder returns

500165IndustryMarket
7 Day-4.3%-0.8%0.5%
30 Day-1.4%-1.1%2.1%
90 Day11.6%9.3%10.4%
1 Year19.1%18.4%11.0%8.3%7.6%5.6%
3 Year55.8%52.9%57.4%51.0%37.0%29.9%
5 Year171.0%161.7%116.2%99.7%39.6%27.0%

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?

53.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500165 (₹526.35) is trading above our estimate of fair value (₹111.08)

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 (53.4x) compared to the Chemicals industry average (10.7x).

PE vs Market: 500165 is poor value based on its PE Ratio (53.4x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: 500165 is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: 500165 is overvalued based on its PB Ratio (7.9x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

How is Kansai Nerolac Paints forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500165's forecast earnings growth (13.2% per year) is above the savings rate (7.6%).

Earnings vs Market: 500165's earnings (13.2% per year) are forecast to grow slower than the Indian market (19.4% per year).

High Growth Earnings: 500165's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500165's revenue (12.1% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: 500165's revenue (12.1% 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 (17%).


Next Steps

Past Performance

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

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500165 has a high level of non-cash earnings.

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


Past Earnings Growth Analysis

Earnings Trend: 500165's earnings have declined by -1.5% per year over the past 5 years.

Accelerating Growth: 500165's earnings growth over the past year (9.9%) exceeds its 5-year average (-1.5% per year).

Earnings vs Industry: 500165 earnings growth over the past year (9.9%) underperformed the Chemicals industry 10.7%.


Return on Equity

High ROE: 500165's Return on Equity (14.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kansai Nerolac Paints's financial position?


Financial Position Analysis

Short Term Liabilities: 500165's short term assets (₹24.0B) exceeds its short term liabilities (₹9.3B)

Long Term Liabilities: 500165's short term assets (₹24.0B) exceeds its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: 500165's debt to equity ratio (3.5%) is considered satisfactory.

Reducing Debt: 500165's debt to equity ratio has reduced from 3.9% to 3.5% over the past 5 years.

Debt Coverage: 500165's debt is well covered by operating cash flow (302.5%).

Interest Coverage: 500165 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500165 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500165's debt is covered by short term assets (assets are 18.9x debt).


Next Steps

Dividend

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

0.49%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: 500165's dividend (0.49%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 500165's dividend (0.49%) is low compared to the top 25% of dividend payers in the Indian market (2.46%).


Stability and Growth of Payments

Stable Dividend: 500165's dividends per share have been stable 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 (26.4%), 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 (24.4% payout ratio).


Next Steps

Management

What is the CEO of Kansai Nerolac Paints's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Harishchandra Meghraj Bharuka (58yo)

15.6yrs

Tenure

₹70,006,000

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 ($USD975.58K) is above average for companies of similar size in the Indian market ($USD711.71K).

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


Management Age and Tenure

0.8yrs

Average Tenure

50.5yo

Average Age

Experienced Management: 500165's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

59.5yo

Average Age

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


Insider Trading

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.


Management Team

  • Harishchandra Meghraj Bharuka (58yo)

    Vice Chairman & MD

    • Tenure: 15.6yrs
    • Compensation: ₹70.01m
  • G. Govindarajan

    Compliance Officer & Secretary

    • Tenure: 0yrs
    • Compensation: ₹5.65m
  • Prashant Pai (56yo)

    CFO & Senior VP of Finance

    • Tenure: 0yrs
    • Compensation: ₹8.90m
  • Anuj Jain (50yo)

    Whole-Time Director

    • Tenure: 1.6yrs
    • Compensation: ₹16.93m
  • Abhijit Natoo (49yo)

    Senior Vice President of Manufacturing & Industrial Relations and Administration

    • Tenure: 0.8yrs
    • Compensation: ₹8.22m
  • Jason Gonsalves (48yo)

    Chief Risk Officer and Director of Corporate Planning

    • Tenure: 0yrs
    • Compensation: ₹6.96m
  • Sudhir Rane (51yo)

    Vice President of Industrial Coatings

    • Tenure: 0yrs
    • Compensation: ₹6.88m
  • Laxman Nikam

    Vice President of Technical

    • Tenure: 0.8yrs

Board Members

  • Pradip Shah (66yo)

    Independent Chairman of the Board

    • Tenure: 5.4yrs
    • Compensation: ₹4.35m
  • Noel Tata (63yo)

    Non-Executive & Independent Director

    • Tenure: 12.1yrs
    • Compensation: ₹3.88m
  • Harishchandra Meghraj Bharuka (58yo)

    Vice Chairman & MD

    • Tenure: 15.6yrs
    • Compensation: ₹70.01m
  • Hitoshi Nishibayashi (55yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Anuj Jain (50yo)

    Whole-Time Director

    • Tenure: 1.6yrs
    • Compensation: ₹16.93m
  • Hidenori Furukawa (61yo)

    Non-Executive Director

    • Tenure: 5.3yrs
  • Sonia Singh

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Hideshi Hasebe

    Non-Executive Director

    • Tenure: 0.3yrs

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: ₹286.921b
  • 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 Analysis2019/11/22 12:39
End of Day Share Price2019/11/22 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.