ICICI Securities maintains add on Kansai Nerolac Paints, target price Rs 565

ICICI Securities has maintained add rating on Kansai Nerolac Paints in the long term with a target price of Rs 565. Shares of Kansai Nerolac ended down 0.4% at Rs 519.55 on Tuesday while BSE Sensex closed 247.55 points down at 40,239.88.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 1319.57 crore, down -13.94 % from last quarter sales of Rs 1533.30 crore and down -2.79 % from last year same quarter sales of Rs 1357.48 crore. The company has reported net profit after tax of Rs 189.92 crore in the latest quarter.


The company’s top management includes Mr.A Jain, Mr.H Furukawa, Mr.H M Bharuka, Mr.Hideshi Hasebe, Mr.Hitoshi Nishibayashi, Mr.N N Tata, Mr.P P Shah, Ms.Sonia Singh. Company has BSR & Co. LLP as its auditors. As on 30-09-2019, the company has a total of 538,919,720 shares outstanding.

Investment Rationale

The brokerage expects revenue and PAT CAGRs of 13.5% and 21.5%, respectively, over FY19-22. Return ratios are also expected to improve during the same period, said ICICI Securities. While revenue performance may be weaker, there are tailwinds such, which would drive earnings growth in FY20-FY21.