Fundamental Analysis

KANSAI NEROLAC PAINTS LTD

Ticker : 500165
BUY: Rs.516.60
Target: Rs.580 

Kansai Nerolac Paints Ltd. (KNPL) is a coating company, engaged in the manufacture of paints. The company’s products include decorative paints, high performance coatings, automotive coatings, general industrial coatings and specialty coatings. On the financial front, the company reported a healthy business in Q1FY20 even amidst global slowdown and weak market sentiments. On the consolidated financial front, the company’s net sales jumped 9.42 per cent YoY to Rs. 1533.3 crore in Q1FY20. Its PBIDT also jumped 13.58 per cent in Q1FY20 YoY to Rs. 253.7 crore. The company reported 4.41 per cent rise in its net profit at Rs. 144.69 crore for Q1FY20. Currently, the stock is trading quite close to its 52-week high of Rs. 535.00. We recommend a BUY.