Here's What Analysts Are Forecasting For Kansai Nerolac Paints Limited (NSE:KANSAINER) After Its Second-Quarter Results

Kansai Nerolac Paints Limited (NSE:KANSAINER) shareholders are probably feeling a little disappointed, since its shares fell 5.5% to ₹271 in the week after its latest second-quarter results. It was a credible result overall, with revenues of ₹20b and statutory earnings per share of ₹14.65 both in line with analyst estimates, showing that Kansai Nerolac Paints is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Kansai Nerolac Paints

Taking into account the latest results, the most recent consensus for Kansai Nerolac Paints from 15 analysts is for revenues of ₹80.8b in 2025. If met, it would imply an okay 3.7% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be ₹7.60, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹82.5b and earnings per share (EPS) of ₹8.99 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The analysts made no major changes to their price target of ₹327, suggesting the downgrades are not expected to have a long-term impact on Kansai Nerolac Paints' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Kansai Nerolac Paints analyst has a price target of ₹375 per share, while the most pessimistic values it at ₹250. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Kansai Nerolac Paints' revenue growth is expected to slow, with the forecast 7.5% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Kansai Nerolac Paints.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kansai Nerolac Paints. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹327, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Kansai Nerolac Paints going out to 2027, and you can see them free on our platform here..

Even so, be aware that Kansai Nerolac Paints is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.