Kansai Nerolac - Making Right Moves In Competitive Environment: Prabhudas Lilladher

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.We attended the India strategy Session of Kansai Paints, Japan (market cap $3.6 billion) where Kansai Nerolac Paints Ltd. (market cap $3.2 billion) highlighted its key initiatives and growth strategies. Kansai Nerolac is following a 360 degree growth strategy which involves-11 new Deco launches aimed at increasing share of premium products,distribution expansion with a focus to increase traction in less indexed south and west India,online incentive to influencers to push sales,technology led innovations in auto paints (including electric vehicle) to increase traction,extension of B2B segment to 75 cities,technology backed products to sustain leadership in powder coatings and gain from rising Infra spends in other industrial paints including railways,aim to increase share of waterproofing and allied segments from 5% to 10% of sales. .Kansai Nerolac has been taking all the right steps, however valuations at 27.2 times FY26 are factoring in expected increase in competition and consequent threat to market share and profitability post Grasim’s entry. We believe improving sales traction and profitability in Industrial paints (45% of sales), could be a saving grace given for Kansai Nerolac given parent’s strength in industrial paints. We estimate 27.9% profit after tax compound annual growth rate over FY23-26 and 13.3% CAGR over FY24-26. Retain accumulate with target price of Rs 370 based on 32 times Sept25 earnings per share (Rs 351 earlier based on 32 times FY25 EPS)..Click on the attachment to read the full report:.Coforge Aims To Grow In Mid-Teens Through Next Fiscal Despite Macro Hiccups.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Kansai Nerolac - Making Right Moves In Competitive Environment: Prabhudas Lilladher

Premium products share in decorative business has improved by 150 bps due to 11 new launches and focused distribution and media spends

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