Add Akzo Nobel India, target price Rs 2150: ICICI Securities

ICICI Securities has add call on Akzo Nobel India with a target price of Rs 2150. The current market price of Akzo Nobel India Ltd. is Rs 1885.45. Time period given by analyst is one year when Akzo Nobel India Ltd. price can reach defined target.

Akzo Nobel India Ltd., incorporated in the year 1954, is a Mid Cap company (having a market cap of Rs 8781.31 Crore) operating in Building Materials sector.

Akzo Nobel India Ltd. key Products/Revenue Segments include Paint, Varnishes & Enamels, Sale of services, Lease Rentals, Other Operating Revenue, Scrap and Duty Drawback for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 919.06 Crore, up 23.55 % from last quarter Total Income of Rs 743.90 Crore and up 17.78 % from last year same quarter Total Income of Rs 780.35 Crore. Company reported net profit after tax of Rs 83.82 Crore in latest quarter.


Investment Rationale
Akzo Nobel NV mentioned about India business in its presentation and earnings call multiple times (Global CEO appears impressed with the progress in India) which likely indicates rising importance of India within the group. It shall track execution and ramp-up closely, which are important for earnings and the narrative (and potential stock rerating). Stock trades at 26x FY23E (>50% discount to APNT), providing significant margin of safety. ADD; TP Rs2,150.

Promoter/FII Holdings
Promoters held 74.76 per cent stake in the company as of 31-Dec-2021, while FIIs owned 1.65 per cent, DIIs 10.62 per cent.