Reduce Kansai Nerolac Paints, target price Rs 385: ICICI Securities

ICICI Securities has reduce call on Kansai Nerolac Paints with a target price of Rs 385. The current market price of Kansai Nerolac Paints is Rs 404.5.

Kansai Nerolac Paints, incorporated in the year 1920, is a Large Cap company (having a market cap of Rs 21766.97 Crore) operating in Building Materials sector.

Kansai Nerolac Paints key Products/Revenue Segments include Paints, Enamels, Varnishes, Other Operating Revenue and Scrap for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1834.19 Crore, down -5.21 % from last quarter Total Income of Rs 1935.03 Crore and up .76 % from last year same quarter Total Income of Rs 1820.31 Crore. Company has reported net profit after tax of Rs 108.97 Crore in latest quarter.

The company’s top management includes Mr.Pradip Panalal Shah, Mr.Hitoshi Nishibayashi, Mr.Shigeki Takahara, Mr.Takashi Tomioka, Ms.Sonia Singh. Company has SRBC & Co LLP as its auditors. As on 31-12-2022, the company has a total of 54 Crore shares outstanding.

Investment Rationale
Key upside risk is better-than-expected gross margins due to correction in input prices. Key downside risk is unexpected irrational competition due to deceleration in general consumption demand.

Promoter/FII Holdings
Promoters held 74.99 per cent stake in the company as of 31-Dec-2022, while FIIs owned 3.32 per cent, DIIs 13.34 per cent.