Please refer to important disclosures at the end of this report
Kansai Nerolac (KNPL) is India’s largest industrial paint company with ~35%
market share in Industrial paints and a third largest player with overall 16%
market share. Products of the company are engaged in manufacturing o
automotive coating, general industrial coating, high-performance coating, and
powder coating. KNPL is well placed in the industrial and decorative paints
segments to benefit from the boost in consumption due to an implementation o
the Seventh Pay Commission, GST, and evenly distributed above average
monsoons which are all positives for the company going forward. The compan
has maintained a 15%+ return on Equity (ROE) over the last few years which
show the company has a very strong moat. The company is virtually debt free
and has a healthy dividend payout of around 21% which seems to continue
going ahead. The blend of a sound balance sheet , strong return ratio, an abilit
of generating hefty free cash flow, history of rewarding shareholder; revival in
industrial paint demand will bodes well for KNPL. Hence Buy.
CMP `370
Stock Info
Beta 0.5
Bloomberg Code KNPL IN
Shareholding Pattern (%)
Promoters 74.0
MF / Banks / Indian Fls 8.5
FII / NRIs / OCBs 7.8
Indian Public / Others 9.8
Abs. (%) 3m 1yr 3yr
Sensex 6.3 8.1 53.2
Kansai Nerolac 25.3 49.3 250.1
Market Cap (
cr) 19,937
52 Week High / Low 398/225
Avg. Daily Volume 62,004
Face Value (
BSE Sensex 28,532
Nifty 8,810
Reuters Code KANE.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Kansai Nerolac Paints
Others | Paints/Varnish
September 6, 2016
Kansai Nerolac Paints | Paints/Varnish
September 6, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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