Kansai Nerolac Q1- Industrial Segment Drives Healthy Growth; To Maintain Strong Growth Ahead: ICICI Securities

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..ICICI Securities Report.Kansai Nerolac Paints Ltd.’s Q1 FY25 was largely in-line with expectations. We note: Performance coatings has reported strong growth in June-24 and is likely to be the chief growth driver with thrust on infrastructure and a strong order pipeline of projects.Decorative segment reported muted numbers due to elections, labour shortage, heat wave and carry-over price cut of ~4%. However, we believe normal monsoon as well as the activations in digital media by Kansai should help report revival in the rest of FY25.We believe Kansai will also likely benefit from price hikes in the paint industry, which will allow it to pass on the inflation in input prices and also invest more in brand-building activities. 45% of Kansai’s business i.e., industrial coatings, is likely to face negligible competitive pressures. We believe it also has the option to use the cashflows from industrial coatings to support the decorative paints segment to maintain market share..We reckon [comfortable] competitive equilibrium in paints is likely broken. Retain underweight on large cap paints. Contrarian investors may consider owning Akzo Nobel/Indigo Paints/Kansai Nerolac..Click on the attachment to read the full report:.IndiGo Q1 Results: Profit Rises 47.5%, Misses Estimates.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 Q1- Industrial Segment Drives Healthy Growth; To Maintain Strong Growth Ahead: ICICI Securities

With recovery in infrastructure spends, capex cycle and automotive production, the brokerage models industrial paints to maintain healthy growth and profitability.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Kansai Nerolac Q1- Industrial Segment Drives Healthy Growth; To Maintain Strong Growth Ahead: ICICI Securities

With recovery in infrastructure spends, capex cycle and automotive production, the brokerage models industrial paints to maintain healthy growth and profitability.

Choose a plan

Follow Us

DOWNLOAD THE APP