Current price is more than the intrinsic value

Intrinsic Value

Stock has been generating better return on equity than bank FD

ROE vs FD rates

Stock doesn't offer attractive dividend returns

Dividend Returns

Good time to consider, as stock is not in overbought zone

Entry Point

Stock not in ASM/GSM lists and not a lot of promoter holding is pledged

No Red Flags

ICICI Direct recommended reduce rating on Kansai Nerolac Paints with a target price of Rs 360 in its research report dated May 13, 2022.

Reduce Kansai Nerolac Paints; target of Rs 360: ICICI Direct

Kansai’s margin compression issue is severe given its big exposure to industrial paints.Small wonder, its shares have declined by 30% in the past one-year, under-performing peers

Kansai Nerolac’s margin compression paints a hazy picture

Kansai Nerolac Paints on May 10 has posted 80 percent fall in ist Q4 net profit at Rs 24.73 crore, down 80.1% from Rs 124.28 crore, YoY.

Kansai Nerolac Paints share price hits 52-week low after Q4 earnings

The management said the quarter witnessed impact in terms of demand for decorative business on account of the steep price increase taken towards the end of Q3FY22.

Kansai Nerolac slips 6%, hits 52-week low as Q4 PAT declines 81%

Kansai Nerolac Paints fell 3.89% to Rs 414.35 after the company reported 80.1% drop in consolidated net profit to Rs 24.73 crore in Q4 FY22 from Rs 124.28 crore in Q4 FY21.

Kansai Nerolac Paints slips after weak Q4 performance

Kansai Nerolac Tanks 5%, Hits Fresh Low; Net Profit Falls 85% YoY in Q4

Kansai Nerolac’s total expenses were at Rs 1,503.54 crore, up 15.47 per cent in Q4/FY 2021-22, as against Rs 1,302.06 crore in the year-ago period

Kansai Nerolac Paints Q4 profit down 85% at Rs 19 cr; revenue up 5.27%

Kansai Nerolac Paints consolidated net profit declines 80.10% in the March 2022 quarter

Asian Paints, Cipla, Vodafone Idea, Gujarat Gas, Ajanta Pharma, Cera Sanitaryware, Chalet, Electrosteel Castings, Kansai Nerolac Paints, Max Financial Services, Mahanagar Gas, Reliance Capital, Torrent Power are among the companies due to announce quarterly results today

Stocks to Watch: RIL, Asian Paints, HCL Tech, JSW Group, NTPC, Adani Ports

Net Sales are expected to increase by 7 percent Y-o-Y (down 15.9 percent Q-o-Q) to Rs. 1,424 crore, according to ICICI Direct.

Kansai Nerolac Q4 PAT may dip 13.9% YoY to Rs. 110 cr: ICICI Direct

Kansai Nerolac Paints Ltd on Friday said its Executive Director Anuj Jain has been elevated as the managing director of the company

Kansai Nerolac Paints elevates Anuj Jain as the managing director

Kansai Nerolac Paints Limited (KNPL) is a paint company. The Company offers a range of products, including decorative, Automotive Coatings and Performance coatings.

Kansai Nerolac Paints Ltd

Kansai Nerolac Paints Ltd

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Reduce Kansai Nerolac Paints; target of Rs 360: ICICI Direct

Kansai Nerolac’s margin compression paints a hazy picture

Kansai Nerolac Paints share price hits 52-week low after Q4 earnings

Kansai Nerolac slips 6%, hits 52-week low as Q4 PAT declines 81%

Kansai Nerolac Paints slips after weak Q4 performance

Kansai Nerolac Tanks 5%, Hits Fresh Low; Net Profit Falls 85% YoY in Q4

Kansai Nerolac Paints Q4 profit down 85% at Rs 19 cr; revenue up 5.27%

Kansai Nerolac Paints consolidated net profit declines 80.10% in the March 2022 quarter

Kansai Nerolac Paints Ltd

Intrinsic ValueIntrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD ratesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend ReturnsA dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry PointHigh demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Reduce Kansai Nerolac Paints; target of Rs 360: ICICI Direct

Kansai Nerolac’s margin compression paints a hazy picture

Kansai Nerolac Paints share price hits 52-week low after Q4 earnings

Kansai Nerolac slips 6%, hits 52-week low as Q4 PAT declines 81%

Kansai Nerolac Paints slips after weak Q4 performance

Kansai Nerolac Tanks 5%, Hits Fresh Low; Net Profit Falls 85% YoY in Q4

Kansai Nerolac Paints Q4 profit down 85% at Rs 19 cr; revenue up 5.27%

Kansai Nerolac Paints consolidated net profit declines 80.10% in the March 2022 quarter

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock