IGI Logo

India's Kansai Nerolac Paints posted a 4% year-on-year rise in first-quarter adjusted profit on Monday, aided by continued demand for automotive coatings.

The company, owned by Japan's Kansai Paint Co, said its consolidated profit before exceptional items and tax in the quarter ended June 30 rose to 3.08 billion rupees ($36.8 million) from 2.95 billion rupees a year ago.

The company, in the corresponding quarter a year ago, had reported an exceptional receipt of 6.61 billion rupees for an asset sale.

For further earnings highlights, click [full story]

KEY CONTEXT

Indian paint makers have benefitted from growing infrastructure activity, real estate demand and automotive sales. However, the sector has seen greater competition with the entry of Grasim Industries earlier this year, prompting companies to lower prices to prop up sales. India's biggest paint maker Asian Paints missed quarterly profit estimates due to declining demand and price cuts. Berger Paints and Akzo Nobel India are set to report quarterly results in August.

PEER COMPARISON

Valuation (next Estimates(next 12 Analysts' sentiment

12 months) months)

RIC PE EV/EBIT Revenue Profit Mean # of Stock to Div

DA growth % growth % rating* analysts price yield

target** (%)

Kansai Nerolac Paints 29.83 18.59 8.77 25.53 Hold 11 0.87 0.91

Asian Paints 53.46 36.78 6.39 -2.63 Hold 34 1.01 1.15

Berger Paints India 49.04 30.79 8.16 4.54 Sell 20 1.08 0.66

Akzo Nobel India 28.99 18.91 8.93 3.00 Hold 2 1.09 2.68

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 83.7166 Indian rupees