Kansai Nerolac's Vision 2030 Indicates Strong Growth, Industrial Focus — PL Capital Upgrades To 'Accumulate'

The Industrial segment will focus on growth, while the auto and decorative segments will strategically aim for innovation and stability. Rural markets continue to outperform urban areas, overall, the decorative business is expected to recover in the medium term. Although competitive intensity is expected to remain high, Kansai Nerolac remains confident of stability over the next nine–12 months, supported by technological advancements and a stabilizing macro environment..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..PL Capital Report.We attended the Kansai Nerolac India Ltd.'s India business strategy call (Part of Kansai Paint Japan, call), where the management indicated strong growth in non - decorative business led by sustain high growth in Automotive Paints, Auto refinishes, Powder coatings and sustained traction and new launches backed by innovation and Kansai’s technological edge across emerging segments. Kansai Nerolac plans to grow sales by 9% with 14-15% margins in near to medium term and is looking at 10% sales CAGR with 18-19% margins by 2030 (18.3% peak margin in FY17). The Industrial segment will focus on growth, while the auto and decorative segments will strategically aim for innovation and stability. Rural markets continue to outperform urban areas, overall, the decorative business is expected to recover in the medium term. Although competitive intensity is expected to remain high, Kansai Nerolac remains confident of stability over the next nine–12 months, supported by technological advancements and a stabilizing macro environment..Kansai Nerolac’s 2030 growth and margin vision seem quite encouraging which can result in growth faster than estimates. Although decorative business is uncertain in near term, valuations at 27.1x FY26 and 25.1x FY27 EPS with 9.9% EPS CAGR factor in most negatives. Upgrade to Accumulate with target price of Rs 288 (28xFY27 vs 278 based on 27xFY27 earlier)..Click on the attachment to read the full report:.'Buy' Adani Ports, Maintains Motilal Oswal, Says NQXT Australia Acquisition To Expand Global Presence.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Kansai Nerolac's Vision 2030 Indicates Strong Growth, Industrial Focus — PL Capital Upgrades To 'Accumulate'

Kansai Nerolac’s 2030 growth and margin vision seem quite encouraging which can result in growth faster than estimates, says PL Capital

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