Indigo 4200-4750
Expected level 6000
Support 3600
Expected level 6000
Support 3600
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Kansai Nerolac Paints Limited company details report
Kansai Nerolac Paints Limited is a leading paint company in India, part of Japan-based Kansai Paint Company Ltd. KNPL holds a significant position in industrial coatings and offers a wide range of products in both decorative and industrial segments. By FY25, achieved a capacity of 66.4 cr litres across 9 manufacturing units in India. The Phase-1 of the Vizag plant was commissioned in FY25. KNPL has a strong presence in tier-2, tier-3, and tier-4 towns, including rural areas, and is now focusing on expanding into tier-1 cities. The company derived ~55% of its sales from decorative paints and ~45% from industrial paints in FY24. However, in FY25, there was a positive shift towards the industrial segment. The industrial segment's revenue is primarily driven by the automotive segment, constituting over 70%, while the non-automotive segment contributes to the remaining share. It is also focusing Paints as a service through Nerolac NxtGen, which is now present in over 250 cities. It is a home painting service offered by Kansai Nerolac Paints, designed to provide professional and reliable painting solutions for homeowners. It expanded presence by entering new segments such as admixtures in construction chemicals and membranes in waterproofing. Its customer base in the industrial segment includes Maruti Suzuki, Toyota Kirloskar, Tata Motors, Mercedes Benz, Royal Enfield, Escorts Kubota, Hero Moto Corp, Godrej, Reliance Industries, Adani Group, Samsung, Bharat Petroleum, Indian Oil, etc. In FY25, its marquee projects included the India International Convention Centre โ Yashobhoomi (Delhi) and the Airport Flyover in Varanasi (Uttar Pradesh). Through acquisitions and joint ventures, it also operates internationally. In Sri Lanka it operates through its subsidiary, Kansai Paints Lanka (Private) Limited, in Nepal through its JV, KNP Japan Private Limited, and in Bangladesh through its subsidiary, Kansai Nerolac Paints (Bangladesh) Limited.
Kansai Nerolac Paints Limited is a leading paint company in India, part of Japan-based Kansai Paint Company Ltd. KNPL holds a significant position in industrial coatings and offers a wide range of products in both decorative and industrial segments. By FY25, achieved a capacity of 66.4 cr litres across 9 manufacturing units in India. The Phase-1 of the Vizag plant was commissioned in FY25. KNPL has a strong presence in tier-2, tier-3, and tier-4 towns, including rural areas, and is now focusing on expanding into tier-1 cities. The company derived ~55% of its sales from decorative paints and ~45% from industrial paints in FY24. However, in FY25, there was a positive shift towards the industrial segment. The industrial segment's revenue is primarily driven by the automotive segment, constituting over 70%, while the non-automotive segment contributes to the remaining share. It is also focusing Paints as a service through Nerolac NxtGen, which is now present in over 250 cities. It is a home painting service offered by Kansai Nerolac Paints, designed to provide professional and reliable painting solutions for homeowners. It expanded presence by entering new segments such as admixtures in construction chemicals and membranes in waterproofing. Its customer base in the industrial segment includes Maruti Suzuki, Toyota Kirloskar, Tata Motors, Mercedes Benz, Royal Enfield, Escorts Kubota, Hero Moto Corp, Godrej, Reliance Industries, Adani Group, Samsung, Bharat Petroleum, Indian Oil, etc. In FY25, its marquee projects included the India International Convention Centre โ Yashobhoomi (Delhi) and the Airport Flyover in Varanasi (Uttar Pradesh). Through acquisitions and joint ventures, it also operates internationally. In Sri Lanka it operates through its subsidiary, Kansai Paints Lanka (Private) Limited, in Nepal through its JV, KNP Japan Private Limited, and in Bangladesh through its subsidiary, Kansai Nerolac Paints (Bangladesh) Limited.
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#SALES #GROWTH
In FY25, revenue came in at โน7,823 cr, increasing by 0.3% YoY. The company gained market share in the new business segment (includes construction chemical, waterproofing & wood finish) and projects segment. Performance coatings continued its growth momentum with strong growth in liquid performance coating and modest growth in powder performance coating. Strong growth momentum in the passenger vehicle (PV) segment was witnessed, resulting in increased market share. The twowheeler (2W) and three-wheeler (3W) segments also recorded robust double-digit growth. However, commercial vehicle (CV) segment witnessed subdued demand. The subsidiaries of the company remained impacted. Its Indian subsidiary, Nerofix Private Limited, saw revenue decline of 5.6% YoY. The subsidiaries in Bangladesh and Sri Lanka de-grew by 29% and 94%, respectively, impacted by adverse macro-economic challenges prevailing in the countries. The Nepal subsidiary recorded revenue growth of 5% YoY.
In FY25, revenue came in at โน7,823 cr, increasing by 0.3% YoY. The company gained market share in the new business segment (includes construction chemical, waterproofing & wood finish) and projects segment. Performance coatings continued its growth momentum with strong growth in liquid performance coating and modest growth in powder performance coating. Strong growth momentum in the passenger vehicle (PV) segment was witnessed, resulting in increased market share. The twowheeler (2W) and three-wheeler (3W) segments also recorded robust double-digit growth. However, commercial vehicle (CV) segment witnessed subdued demand. The subsidiaries of the company remained impacted. Its Indian subsidiary, Nerofix Private Limited, saw revenue decline of 5.6% YoY. The subsidiaries in Bangladesh and Sri Lanka de-grew by 29% and 94%, respectively, impacted by adverse macro-economic challenges prevailing in the countries. The Nepal subsidiary recorded revenue growth of 5% YoY.
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#EBITDA #GROWTH
In FY25, EBITDA declined by 8.3% YoY at โน942 cr. The decrease is majorly attributable to change in revenue mix towards industrial paints, raw material price inflation till August 2024 and price actions taken earlier. Employee benefit expense witnessed an increase of ~12%, while other expense was up by 2%.
In FY25, EBITDA declined by 8.3% YoY at โน942 cr. The decrease is majorly attributable to change in revenue mix towards industrial paints, raw material price inflation till August 2024 and price actions taken earlier. Employee benefit expense witnessed an increase of ~12%, while other expense was up by 2%.
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#PAT #GROWTH
In FY25, net profit (including exceptional item) was โน1,109 cr v/s โน1,176 cr in FY24. Net profit in FY24, included an exceptional profit of ~โน661 cr, towards the sale of land parcel at Kavesar, Thane. In FY25 exceptional item was ~โน630 cr, of which ~โน665 cr was towards profit on sale of land parcel in Lower Parel. It further included loss of ~โน23 cr and ~โน13 cr towards provision of impairment of goodwill & other asset in Bangladesh and Sri Lanka, respectively. However, excluding the exceptional item, profit declined by ~6%.
In FY25, net profit (including exceptional item) was โน1,109 cr v/s โน1,176 cr in FY24. Net profit in FY24, included an exceptional profit of ~โน661 cr, towards the sale of land parcel at Kavesar, Thane. In FY25 exceptional item was ~โน630 cr, of which ~โน665 cr was towards profit on sale of land parcel in Lower Parel. It further included loss of ~โน23 cr and ~โน13 cr towards provision of impairment of goodwill & other asset in Bangladesh and Sri Lanka, respectively. However, excluding the exceptional item, profit declined by ~6%.
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#EBITDA #MARGIN
In FY25, EBITDA margin stood at 12%, down by 113 bps YoY. Gross margin contracted by 14 bps to 35.2%. The average crude oil price moderated during the year, on a YoY basis. However, it was partially offset by currency depreciation. The government has imposed anti-dumping duty on Rutile (TiO2) originating in or exported from China.
In FY25, EBITDA margin stood at 12%, down by 113 bps YoY. Gross margin contracted by 14 bps to 35.2%. The average crude oil price moderated during the year, on a YoY basis. However, it was partially offset by currency depreciation. The government has imposed anti-dumping duty on Rutile (TiO2) originating in or exported from China.
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#ROE
The ROE for FY25 was 19%, impacted by lower profitability. This also includes an exceptional item impact of slae of land. However excluding the impact of exceptional item incorporated in net profit, the ROE would be different.
The ROE for FY25 was 19%, impacted by lower profitability. This also includes an exceptional item impact of slae of land. However excluding the impact of exceptional item incorporated in net profit, the ROE would be different.
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#SECTOR #POTENTIAL
โข The domestic paint industry consisting of the decorative and industrial paint segment is estimated at over ~โน80,000 cr. The decorative paint segment constitutes 75% and industrial paint segment makes up the balance 25% of the domestic paint market. โข The Indian coatings market is projected to achieve a revenue CAGR of 7.4% over the period 2025โ2027, significantly outpacing the global coatings market, which is expected to grow at a CAGR of 3.9% during the same period. โข 75% of the Indian paint industry is dominated by the organized players and rest by the unorganized players. Increased customer awareness has led to a shift in preference from unorganized to organized players, reducing dealer influence and making it imperative to establish a strong brand image. โข The Indian paint industry, particularly the decorative segment, continued to face headwinds in FY25 due to heightened competition and subdued demand. The organized decorative paint sector recorded negative growth, impacted by intensified competition from both established and new players. Additionally, the year was marked by a slowdown in new construction activity, reduced renovation intensity, and weaker-than-expected B2B demand. Despite these headwinds, recent trends indicate early signs of recovery. โข The Indian paint industry has been witnessing a gradual shift in the preferences of customers from the traditional whitewash to high-quality paints like emulsions and enamel paints, which is providing the basic stability for growth of Indian paint industry. โข Crude oil forming an essential component of raw material for paint companies, any volatility in its price will need to be critically monitored to cushion the impact on profitability. Recently, the prices of crude oil saw a substantial decline. โข The government has applied anti-dumping duty on Rutile (titanium dioxide) originating in or exported from China. โข As per RBI (Reserve Bank of India) bulletin, rural demand is expected to continue the growth momentum and construction activity is poised to increase.
โข The domestic paint industry consisting of the decorative and industrial paint segment is estimated at over ~โน80,000 cr. The decorative paint segment constitutes 75% and industrial paint segment makes up the balance 25% of the domestic paint market. โข The Indian coatings market is projected to achieve a revenue CAGR of 7.4% over the period 2025โ2027, significantly outpacing the global coatings market, which is expected to grow at a CAGR of 3.9% during the same period. โข 75% of the Indian paint industry is dominated by the organized players and rest by the unorganized players. Increased customer awareness has led to a shift in preference from unorganized to organized players, reducing dealer influence and making it imperative to establish a strong brand image. โข The Indian paint industry, particularly the decorative segment, continued to face headwinds in FY25 due to heightened competition and subdued demand. The organized decorative paint sector recorded negative growth, impacted by intensified competition from both established and new players. Additionally, the year was marked by a slowdown in new construction activity, reduced renovation intensity, and weaker-than-expected B2B demand. Despite these headwinds, recent trends indicate early signs of recovery. โข The Indian paint industry has been witnessing a gradual shift in the preferences of customers from the traditional whitewash to high-quality paints like emulsions and enamel paints, which is providing the basic stability for growth of Indian paint industry. โข Crude oil forming an essential component of raw material for paint companies, any volatility in its price will need to be critically monitored to cushion the impact on profitability. Recently, the prices of crude oil saw a substantial decline. โข The government has applied anti-dumping duty on Rutile (titanium dioxide) originating in or exported from China. โข As per RBI (Reserve Bank of India) bulletin, rural demand is expected to continue the growth momentum and construction activity is poised to increase.
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#COMPANY #OUTLOOK
โข The company aspires to outpace overall market growth and targets revenue CAGR of ~10% by FY30, with an EBITDA margin of around 18%. Over the next three years (FY25โFY28), it aims to achieve: Revenue CAGR of ~9%, with EBITDA margin in the range of 14%โ15%. โข They aim to establish India as the leading entity within Kansai Paints Limited (currently it contribute 24.3%) under the new leadership. โข It shall maintain the market leadership in the Automotive segment and attain the No.1 position in Industrial Coatings. โข Key strategies in the retail segment includes leveraging product superiority through Paint+ and advanced Japanese technology, implementation of influencer engagement and painter loyalty programs and drive distribution expansion to broaden market presence. In the project segment, the focus is on expanding geographical presence, building a strong pipeline of project sites, and offering a specialized product range tailored to project-specific requirements. โข Key growth drivers in the construction chemicals include - Offering a comprehensive product portfolio, Strengthening distribution networks & Engaging through architect and interior designer programs. In the wood finish (Premium) segment, it shall maintain a complete product portfolio, focus on distribution expansion and promote via architect & interior designer engagement programs.
โข The company aspires to outpace overall market growth and targets revenue CAGR of ~10% by FY30, with an EBITDA margin of around 18%. Over the next three years (FY25โFY28), it aims to achieve: Revenue CAGR of ~9%, with EBITDA margin in the range of 14%โ15%. โข They aim to establish India as the leading entity within Kansai Paints Limited (currently it contribute 24.3%) under the new leadership. โข It shall maintain the market leadership in the Automotive segment and attain the No.1 position in Industrial Coatings. โข Key strategies in the retail segment includes leveraging product superiority through Paint+ and advanced Japanese technology, implementation of influencer engagement and painter loyalty programs and drive distribution expansion to broaden market presence. In the project segment, the focus is on expanding geographical presence, building a strong pipeline of project sites, and offering a specialized product range tailored to project-specific requirements. โข Key growth drivers in the construction chemicals include - Offering a comprehensive product portfolio, Strengthening distribution networks & Engaging through architect and interior designer programs. In the wood finish (Premium) segment, it shall maintain a complete product portfolio, focus on distribution expansion and promote via architect & interior designer engagement programs.
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Kansai Nerolac Paints Limited 180-230
Expected level 300
Support 150
Expected level 300
Support 150
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๐๐ผ๐ป๐ด ๐ง๐ฒ๐ฟ๐บ ยฎโข
Bharat forge 1000-1120 Expected level 1400 Support 850
1435๐Long term level hit ๐ฏ
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Asian Paints Ltd Company Details Report
Asian Paints Ltd is an Indian multinational paint company, headquartered in Mumbai, Maharashtra. It manufactures a wide range of paints for decorative and industrial use. In decorative paints, the company is present in interior wall finishes, exterior wall finishes, adhesives, waterproofing, undercoats, enamels and wood finishes. In the industrial segment it operates through two joint ventures (JV) PPG Asian Paints Pvt. Ltd. (PPG-AP) for automotive, marine and packaging coatings and Asian Paints PPG Pvt. Ltd. (AP-PPG) for industrial protective coatings, powder coatings, floor coatings and road markings. In the home dรฉcor segment, it offers solutions that includes paints, adhesives, wall coverings, modular kitchens and wardrobes, textures painting aid, bath fittings and sanitaryware, waterproofing, decorative lightings (through White teak), wall stickers, furniture, furnishings & rugs, UPVC (unplasticized polyvinyl chloride) windows & door systems (through Weatherseal) and mechanized tools. As on 31st March 2025, companyโs installed in-house decorative paint manufacturing capacity in India is 22,90,000 kilo litre (KL)/annum (over and above, it has also tied up with outside processing centres for manufacture and purchase of certain products). It has 26 in-house paint manufacturing facilities worldwide. It caters to over ~1,69,000 touch-points across India. It operates in emerging economies through its seven corporate brands, viz. Asian Paints, Apco Coatings, Asian Paints Berger, Asian Paints Causeway, SCIB Paints, Taubmans and Kadisco Asian Paints.
Asian Paints Ltd is an Indian multinational paint company, headquartered in Mumbai, Maharashtra. It manufactures a wide range of paints for decorative and industrial use. In decorative paints, the company is present in interior wall finishes, exterior wall finishes, adhesives, waterproofing, undercoats, enamels and wood finishes. In the industrial segment it operates through two joint ventures (JV) PPG Asian Paints Pvt. Ltd. (PPG-AP) for automotive, marine and packaging coatings and Asian Paints PPG Pvt. Ltd. (AP-PPG) for industrial protective coatings, powder coatings, floor coatings and road markings. In the home dรฉcor segment, it offers solutions that includes paints, adhesives, wall coverings, modular kitchens and wardrobes, textures painting aid, bath fittings and sanitaryware, waterproofing, decorative lightings (through White teak), wall stickers, furniture, furnishings & rugs, UPVC (unplasticized polyvinyl chloride) windows & door systems (through Weatherseal) and mechanized tools. As on 31st March 2025, companyโs installed in-house decorative paint manufacturing capacity in India is 22,90,000 kilo litre (KL)/annum (over and above, it has also tied up with outside processing centres for manufacture and purchase of certain products). It has 26 in-house paint manufacturing facilities worldwide. It caters to over ~1,69,000 touch-points across India. It operates in emerging economies through its seven corporate brands, viz. Asian Paints, Apco Coatings, Asian Paints Berger, Asian Paints Causeway, SCIB Paints, Taubmans and Kadisco Asian Paints.
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