Kansai Nerolac - Visible Trajectory Improvement Under Leadership Of Anuj Jain: ICICI Securities

ICICI Securities Report

Kansai Nerolac Paints Ltd. has introduced multiple discounted cash flow-accretive initiatives under the leadership of Mr. Anuj Jain, Managing Director such as-

1. steady expansion of innovative product portfolio across sub-segments,

2. relaunched brand as ‘Nerolac Paint plus with Japanese technology’ supported by higher brand and research and development spends,

3. investments in projects, Next-gen painting services and influencer reach to connect with customers and generate pipeline,

4. Kansai has also expanded dealer reach to 31,000 outlets in FY23 from 19,000 in FY19 and has also leveraged distribution model to improve coverage of smaller cities and rural markets.

We also believe differentiated product offerings in Industrial coatings and industry tailwinds like automotive recovery and commodity price correction offer growth and margin tailwinds.

Upgrade to 'Add' as risk of higher competition appears priced in after flat one-year stock performance.

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