Kansai Nerolac Paints Limited (KANSAINER) AI Stock Analysis

• Market Cap: ₹157.38B
• Dividend Yield: 1.11%
• Average Volume (3M): 30.53K
• Price to Earnings (P/E): 39.2
• Beta (1Y): 0.73
• Revenue Growth: 1.06%
• EPS Growth: 83.53%
• Country: IN
• Employees: 3,784
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 2.00
• Shares Outstanding: 808,524,700
• 10 Day Avg. Volume: 25,578
• 30 Day Avg. Volume: 30,534
• PEG Ratio: -4.75
• Price to Book (P/B): 3.00
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 55.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹248.00
• Price Target Upside: 1.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 8.12
• Revenue Forecast (FY): ₹80.39B

• Rating: 75 Outperform
• Price Target: ₹219.00 ▼(-10.50% Downside)
• Action: Reiterated Date: 12/25/25
• Date: Action: Reiterated 12/25/25

Overall score is driven primarily by strong financial performance (healthy profitability, prudent leverage, and solid operating cash generation). Technicals are supportive due to the price holding above key moving averages, but mixed momentum signals (negative MACD and elevated RSI) temper the score. Valuation appears reasonable with a moderate P/E and a modest dividend yield.

Positive Factors

Diversified B2C/B2B Revenue Mix

Kansai Nerolac sells both decorative paints and industrial coatings (notably automotive), providing diversification across retail and OEM channels. This structural mix reduces reliance on a single demand cycle, smoothing revenue and supporting long-term resilience in cash flows and market reach.

Stable margins and strong income statement

Reported consistently healthy gross profit and solid net margins with stable EBIT/EBITDA performance. Durable margin profiles indicate pricing power and cost discipline, enabling reinvestment in distribution, R&D, and product premiumization that support sustained profitability over months to years.

Healthy balance sheet and low leverage

A strong equity ratio and low leverage provide financial flexibility to fund capex, absorb demand shocks, and pursue strategic initiatives without overreliance on external debt. Favorable ROE shows efficient capital use, underpinning longer-term stability and investment capacity.

Negative Factors

Earnings volatility / EPS decline

A steep reported EPS decline signals earnings volatility that may reflect margin compression, one-offs, or demand swings. Persistent EPS weakness undermines predictability of distributable cash and may reduce flexibility for capital allocation until earnings recover sustainably.

Free-cash-flow fluctuations

Operating cash is solid but free-cash-flow has been uneven, implying working-capital swings or lumpy capex. Such FCF variability can constrain consistent dividends, buybacks, or timely investments and increases reliance on careful cash management during weaker demand periods.

Raw-material cost sensitivity

Coatings rely on commodity inputs (resins, pigments, solvents). Exposure to volatile raw-material prices and imperfect pass-through can compress margins during inflationary episodes. This structural input-sensitivity remains a medium-term earnings risk across cycles.

Kansai Nerolac Paints Limited Business Overview & Revenue Model

Company Description

Kansai Nerolac Paints Limited manufactures and sells paints and varnishes, enamels, or lacquers in India. It offers interior and exterior decorative wall paints, wood coatings, metal enamel paints, and ancillary paints, as well as adhesives and waterproofing products; and automotive and powder coatings, performance coatings liquid, auto refinish, primers, wood finishes, and construction chemicals. The company also develops and supplies paint systems used on the finishing lines of electrical components, cycle, material handling equipment, bus bodies, containers, and furniture industries. In addition, it provides disinfectant, hand sanitizers, and multi surface protective sheets. The company was formerly known as Goodlass Nerolac Paints Limited and changed its name to Kansai Nerolac Paints Limited in April 2006. The company was incorporated in 1920 and is based in Mumbai, India. Kansai Nerolac Paints Limited is a subsidiary of Kansai Paint Co., Ltd.

How the Company Makes Money

Kansai Nerolac Paints Limited generates revenue through the sale of its extensive range of paint products across different segments. The primary revenue streams include decorative paints for residential and commercial use, which are significantly influenced by real estate development and renovation trends. Additionally, the company earns income from industrial coatings, which serve sectors like automotive, railways, and general manufacturing. Strategic partnerships with builders, architects, and contractors enhance its distribution and market reach. Seasonal promotions, brand loyalty programs, and innovative product launches also play a crucial role in driving sales and revenue growth.

Kansai Nerolac Paints Limited Financial Statement Overview

Summary

Strong fundamentals supported by solid income statement performance (revenue growth and stable margins), a healthy balance sheet with prudent leverage, and consistent operating cash flows despite some free-cash-flow fluctuations.

Income Statement

Kansai Nerolac Paints Limited has demonstrated strong revenue growth over the years, with a notable increase from 2022 to 2025. The gross profit margin has been consistently healthy, reflecting efficient cost management. Additionally, the company has maintained a solid net profit margin, indicating robust profitability. The EBIT and EBITDA margins are stable, showcasing strong operational performance.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio indicating prudent leverage. The equity ratio is high, reflecting a solid asset base backed by equity. Return on equity is favorable, demonstrating effective use of shareholder funds to generate profits. Overall, the balance sheet is stable, though continued monitoring of liabilities is advisable.

Cash Flow

Kansai Nerolac Paints Limited has shown a healthy cash flow position with consistent operating cash flows supporting net income. Despite fluctuations in free cash flow, the company managed positive growth in recent years. The operating cash flow to net income ratio underscores efficient cash generation from operations, providing a solid cushion for investments and debt servicing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	78.52B	78.23B	78.01B	75.43B	62.82B	50.58B
Gross Profit	23.92B	27.54B	19.64B	22.78B	18.25B	18.87B
EBITDA	17.03B	9.42B	17.81B	8.44B	6.74B	9.01B
Net Income	11.33B	11.43B	11.85B	4.74B	3.59B	5.30B
Balance Sheet
Total Assets	0.00	82.17B	74.10B	63.06B	57.09B	55.33B
Cash, Cash Equivalents and Short-Term Investments	21.34B	21.36B	15.81B	6.34B	3.13B	7.90B
Total Debt	0.00	2.96B	2.76B	2.87B	3.19B	2.69B
Total Liabilities	-64.04B	18.13B	18.11B	17.46B	15.58B	14.44B
Stockholders Equity	64.04B	64.23B	55.83B	45.34B	41.32B	40.53B
Cash Flow
Free Cash Flow	0.00	3.46B	6.66B	2.85B	-1.94B	5.42B
Operating Cash Flow	0.00	6.72B	9.03B	4.08B	247.70M	6.46B
Investing Cash Flow	0.00	-3.79B	-5.90B	-2.27B	2.50B	-4.53B
Financing Cash Flow	0.00	-3.66B	-2.49B	-1.33B	-3.09B	-2.74B

Kansai Nerolac Paints Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 244.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KANSAINER, the sentiment is Negative. The current price of 244.7 is above the 20-day moving average (MA) of 203.11, above the 50-day MA of 220.47, and above the 200-day MA of 237.80, indicating a bearish trend. The MACD of -6.99 indicates Negative momentum. The RSI at 30.93 is Neutral, neither overbought nor oversold. The STOCH value of 30.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KANSAINER.

Kansai Nerolac Paints Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KANSAINER	75 Outperform	₹157.38B	39.21	―	1.11%	1.06%	83.53%
INDIGOPNTS	74 Outperform	₹43.11B	37.48	―	0.30%	0.14%	2.95%
AKZOINDIA	69 Neutral	₹129.22B	48.69	―	3.04%	-3.03%	357.65%
GSFC	68 Neutral	₹62.68B	11.49	―	2.80%	15.25%	26.49%
RALLIS	63 Neutral	₹50.17B	700.00	―	0.92%	0.91%	18.12%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
REFEX	60 Neutral	₹29.40B	16.52	―	0.19%	21.67%	25.86%

Kansai Nerolac Paints Limited Corporate Events

Kansai Nerolac Sets NCLT-Convened Shareholders’ Meet on Nerofix Merger

Kansai Nerolac Paints Limited has notified stock exchanges that, following directions from the National Company Law Tribunal (NCLT), it has published a notice in the Free Press Journal and Navshakti regarding a court-convened meeting of its equity shareholders. The meeting, scheduled for 27 February 2026 and to be held via video conferencing and other audio-visual means, will consider a proposed Scheme of Amalgamation of Nerofix Private Limited with Kansai Nerolac Paints Limited, a step that could streamline group structure and potentially enhance operational and financial efficiencies for shareholders and other stakeholders.