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Kansai Nerolac Paints Ltd

NSE: KANSAINER BSE: 500165

187.02

(0.77%)

Thu, 12 Mar 2026, 03:54 am

Kansai Nerolac Paints Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3.1x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Kansai Nerolac Paints's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Kansai Nerolac Paints's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Kansai Nerolac Paints's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Kansai Nerolac Paints's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Performance (ROE) is expected to be above the current IN Chemicals industry average.
  • An improvement in Kansai Nerolac Paints's performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Kansai Nerolac Paints is expected to increase but not above the 50% threshold in 2 years time.
  • Kansai Nerolac Paints's earnings are expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).
  • Kansai Nerolac Paints's earnings growth is positive but not above the India market average.
  • Kansai Nerolac Paints's earnings are expected to decrease over the next year.
  • Kansai Nerolac Paints's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Kansai Nerolac Paints is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Kansai Nerolac Paints's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Kansai Nerolac Paints's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
  • Kansai Nerolac Paints's revenue growth is positive but not above the India market average.

health

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Pros

  • Kansai Nerolac Paints is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kansai Nerolac Paints is profitable, therefore cash runway is not a concern.
  • Kansai Nerolac Paints is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (333.9%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 14x debt.
  • Kansai Nerolac Paints's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 36.6x coverage).
  • Kansai Nerolac Paints's level of debt (4.7%) compared to net worth is satisfactory (less than 40%).
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Cons

  • The level of debt compared to net worth has increased over the past 5 years (3.2% vs 4.7% today).
  • High level of physical assets or inventory.

management

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Pros

  • Harishchandra Meghraj's remuneration is about average for companies of similar size in India.
  • Harishchandra Meghraj's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • The average tenure for the Kansai Nerolac Paints board of directors is less than 3 years, this suggests a new board.
  • The average tenure for the Kansai Nerolac Paints management team is less than 2 years, this suggests a new team.

past

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Pros

  • Kansai Nerolac Paints's 1-year earnings growth exceeds its 5-year average (15.1% vs -0.8%)
  • Kansai Nerolac Paints used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
  • Kansai Nerolac Paints's earnings growth has exceeded the IN Chemicals industry average in the past year (15.1% vs 9.1%).
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Cons

  • Kansai Nerolac Paints's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Kansai Nerolac Paints's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
  • Kansai Nerolac Paints has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

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Pros

  • 500165 matched the India Market (-14.5%) over the past year.
  • BSE:500165 is up 7.1% along with the Chemicals industry (6.9%) over the past month.
  • BSE:500165 is up 7.1% along with the India market (8%) over the past month.
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Cons

  • Kansai Nerolac Paints's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
  • Kansai Nerolac Paints's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
  • Kansai Nerolac Paints is overvalued based on assets compared to the IN Chemicals industry average.
  • Kansai Nerolac Paints is poor value based on expected growth next year.
  • Kansai Nerolac Paints is overvalued based on earnings compared to the IN Chemicals industry average.
  • Kansai Nerolac Paints is overvalued based on earnings compared to the India market.
  • 500165 underperformed the Chemicals industry which returned 2.2% over the past year.

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