Kansai Nerolac Paints Ltd

About

Having started its operations in 1920 as Gahagan Paints & Varnish in Mumbai, Kansai Nerolac Paints is principally engaged in the manufacturing of Paints and is a market leader in Industrial coatings. [1]

The company is subsidiary of Kansai Paints Co. Ltd Japan, from whom it continuously gets support and guidance in improvement of quality standards and getting best technology upgrades.

Key Points

Leading player in domestic Industrial paint industry
KNPL is a leader in Industrial coatings. Leveraging its position as priority supplier across various automotive OEMs and ancillaries, the company now has substantial presence in Performance coatings & Powder coating.
It has continued to venture into newer areas of Wood coating, Adhesives, Transportation coatings, Coil & Rebar coatings ,Super durable powders, Construction chemicals. [1]

See full details
  • Market Cap 33,879 Cr.
  • Current Price 629
  • High / Low 680 / 469
  • Stock P/E 55.5
  • Book Value 75.2
  • Dividend Yield 0.52 %
  • ROCE 17.7 %
  • ROE 13.6 %
  • Face Value 1.00

Pros

  • Company is almost debt free.
  • Company is expected to give good quarter
  • Company has been maintaining a healthy dividend payout of 38.98%

Cons

  • Stock is trading at 8.36 times its book value
  • The company has delivered a poor sales growth of 6.14% over past five years.
  • Company has a low return on equity of 13.96% for last 3 years.
Loading peers table ...

Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
1,365 1,428 1,221 1,542 1,326 1,332 1,080 639 1,383 1,593 1,460 1,403
1,169 1,247 1,069 1,289 1,107 1,134 946 562 1,115 1,288 1,246 1,212
Operating Profit 196 181 152 254 219 198 134 77 269 304 213 191
OPM % 14% 13% 12% 16% 17% 15% 12% 12% 19% 19% 15% 14%
Other Income 14 20 13 7 4 11 4 8 5 14 11 10
Interest 3 3 3 5 5 5 6 6 5 5 8 7
Depreciation 27 28 28 33 34 37 38 38 39 40 48 42
Profit before tax 180 169 133 223 185 166 94 42 229 274 168 152
Tax % 35% 37% 36% 35% -3% 30% 30% 29% 27% 25% 27% 27%
Net Profit 120 107 87 146 191 117 67 33 168 204 124 114
EPS in Rs 2.22 1.99 1.62 2.71 3.54 2.17 1.25 0.62 3.12 3.78 2.31 2.12

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2007 Mar 2008 Mar 2009 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
1,264 1,368 1,369 2,801 3,120 3,505 3,767 4,053 4,658 5,424 5,280 5,074 5,838
1,099 1,196 1,219 2,463 2,753 3,054 3,182 3,315 3,864 4,672 4,476 4,211 4,861
Operating Profit 165 172 150 338 367 451 585 737 794 753 804 863 977
OPM % 13% 13% 11% 12% 12% 13% 16% 18% 17% 14% 15% 17% 17%
Other Income 28 40 33 132 10 22 563 98 71 61 26 38 40
Interest 2 2 2 1 2 1 0 0 1 10 21 24 25
Depreciation 36 42 38 47 66 68 68 70 77 106 142 165 169
Profit before tax 155 168 143 422 310 404 1,079 765 787 697 667 712 823
Tax % 34% 30% 29% 30% 33% 32% 16% 33% 35% 36% 23% 26%
Net Profit 104 120 103 293 208 274 901 509 514 453 521 530 610
EPS in Rs 2.03 2.22 1.91 5.44 3.86 5.09 16.72 9.44 9.55 8.40 9.67 9.83 11.33
Dividend Payout % 28% 27% 31% 20% 29% 28% 18% 32% 27% 31% 33% 53%
Compounded Sales Growth
10 Years:%
5 Years:6%
3 Years:3%
TTM:33%
Compounded Profit Growth
10 Years:%
5 Years:2%
3 Years:1%
TTM:49%
Stock Price CAGR
10 Years:22%
5 Years:11%
3 Years:11%
1 Year:32%
Return on Equity
10 Years:%
5 Years:15%
3 Years:14%
Last Year:14%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2007 Mar 2008 Mar 2009 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
27 27 27 54 54 54 54 54 54 54 54 54
Reserves 490 572 636 1,233 1,372 1,548 2,456 2,761 3,078 3,362 3,706 3,999
Borrowings 127 125 94 84 68 51 46 29 35 108 178 173
233 291 328 715 786 720 685 793 962 994 945 1,307
Total Liabilities 875 1,015 1,085 2,087 2,280 2,373 3,240 3,636 4,130 4,518 4,884 5,533
225 240 237 786 922 916 937 957 1,036 1,465 1,906 1,912
CWIP 18 27 36 123 48 44 42 154 346 316 169 207
Investments 142 220 303 53 49 208 539 531 521 197 306 669
491 528 509 1,124 1,261 1,205 1,722 1,993 2,228 2,540 2,502 2,745
Total Assets 875 1,015 1,085 2,087 2,280 2,373 3,240 3,636 4,130 4,518 4,884 5,533

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2007 Mar 2008 Mar 2009 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
106 141 203 220 195 305 392 351 360 100 595 646
-48 -123 -119 -142 -113 -239 144 -557 -162 89 -376 -453
-83 -6 -42 -77 -87 -87 -92 -216 -192 -223 -141 -274
Net Cash Flow -25 12 42 0 -6 -21 444 -422 6 -34 78 -81

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2007 Mar 2008 Mar 2009 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 61 63 56 56 55 54 53 53 55 51 54 69
Inventory Days 99 92 77 114 125 95 90 123 107 132 127 158
Days Payable 79 85 104 82 84 56 85 98 90 82 75 120
Cash Conversion Cycle 81 70 29 89 96 93 58 78 72 101 106 107
Working Capital Days 71 55 25 51 57 52 49 81 66 80 85 94
ROCE % 26% 23% 19% 22% 25% 26% 26% 25% 20% 18% 18%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
74.99 74.99 74.99 74.99 74.99 74.99 74.99 74.99 74.99 74.99 74.99 74.99
5.02 4.63 4.65 4.16 3.75 3.72 3.93 4.37 4.03 4.17 3.73 3.72
10.45 10.60 10.71 11.25 11.96 12.10 12.01 11.70 12.19 12.33 12.86 11.58
9.54 9.78 9.65 9.60 9.30 9.19 9.07 8.94 8.79 8.51 8.42 9.71

Documents