Latest news with #KansaiNerolac
Time of India
a day ago
- Business
- Time of India
Paint companies face profitability challenges amidst high competition
MUMBAI: Investor woes in shares of paints companies may be far from over as the hyper competition in the sector and tepid demand are expected to continue squeezing profitability in the sector. With valuations remaining elevated despite the recent underperformance in the shares, money managers and analysts are less enthusiastic about their prospects in the foreseeable future. So far in 2025, Asian Paints is down 4.2% and Kansai Nerolac has fallen 4.5%. Berger Paints bucked the trend, rising 24%. In comparison, the Nifty 50 is up 6%. Morgan Stanley said this 'de-rating' is not yet done. "While there is consensus on the sell side on growth and ratings, we think the exact extent of a potential de-rating for paint stocks is not yet understood," said the brokerage in a recent note. The apathy for paints shares among investors and analysts is a contrast to the situation three years ago when they were Dalal Street darlings for over a decade. The entry of deep-pocketed players like the Aditya Birla Group into the sector has resulted in companies focussing on fighting for market share, putting pressure on profitability. "The overall competitive intensity will remain high for the next two years," said Aniruddha Kekatpure, head of research at Edelweiss Mutual Fund . "If the new entrant executes better than expected, the stock prices of incumbents will likely continue to languish." The recent declines in paint shares have removed some froth of their valuations, which were considered among the most expensive in the consumer-facing businesses. "While valuations have moderated from their post-COVID highs, they continue to remain elevated amid persistent growth and margin pressures," Vaqarjaved Khan, senior fundamental analyst at Angel One. Khan said the estimated Price to Earnings (P/E) ratio - a popular valuation measure - for most paint companies still hovers around 48-55x, a rich multiple, especially when the growth outlook for FY26 appears clouded.
Economic Times
2 days ago
- Business
- Economic Times
Paint companies face profitability challenges amidst high competition
The recent declines in paint shares have removed some froth of their valuations, which were considered among the most expensive in the consumer-facing businesses. Investor concerns persist for paint companies due to intense competition and weak demand, impacting profitability. Despite recent share underperformance, valuations remain high, leading to analyst caution. The entry of new players like Aditya Birla Group intensifies the fight for market share, further pressuring margins and potentially causing incumbent stock prices to struggle. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Investor woes in shares of paints companies may be far from over as the hyper competition in the sector and tepid demand are expected to continue squeezing profitability in the sector. With valuations remaining elevated despite the recent underperformance in the shares, money managers and analysts are less enthusiastic about their prospects in the foreseeable far in 2025, Asian Paints is down 4.2% and Kansai Nerolac has fallen 4.5%. Berger Paints bucked the trend, rising 24%. In comparison, the Nifty 50 is up 6%.Morgan Stanley said this 'de-rating' is not yet done."While there is consensus on the sell side on growth and ratings, we think the exact extent of a potential de-rating for paint stocks is not yet understood," said the brokerage in a recent apathy for paints shares among investors and analysts is a contrast to the situation three years ago when they were Dalal Street darlings for over a decade. The entry of deep-pocketed players like the Aditya Birla Group into the sector has resulted in companies focussing on fighting for market share, putting pressure on profitability. "The overall competitive intensity will remain high for the next two years," said Aniruddha Kekatpure, head of research at Edelweiss Mutual Fund. "If the new entrant executes better than expected, the stock prices of incumbents will likely continue to languish."The recent declines in paint shares have removed some froth of their valuations, which were considered among the most expensive in the consumer-facing businesses."While valuations have moderated from their post-COVID highs, they continue to remain elevated amid persistent growth and margin pressures," Vaqarjaved Khan, senior fundamental analyst at Angel One. Khan said the estimated Price to Earnings (P/E) ratio - a popular valuation measure - for most paint companies still hovers around 48-55x, a rich multiple, especially when the growth outlook for FY26 appears clouded.
Time of India
2 days ago
- Business
- Time of India
Paint companies face profitability challenges amidst high competition
Mumbai: Investor woes in shares of paints companies may be far from over as the hyper competition in the sector and tepid demand are expected to continue squeezing profitability in the sector. With valuations remaining elevated despite the recent underperformance in the shares, money managers and analysts are less enthusiastic about their prospects in the foreseeable future. So far in 2025, Asian Paints is down 4.2% and Kansai Nerolac has fallen 4.5%. Berger Paints bucked the trend, rising 24%. In comparison, the Nifty 50 is up 6%. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: 1 simple trick to get all TV channels Techno Mag Learn More Undo Morgan Stanley said this 'de-rating' is not yet done. Agencies "While there is consensus on the sell side on growth and ratings, we think the exact extent of a potential de-rating for paint stocks is not yet understood," said the brokerage in a recent note. The apathy for paints shares among investors and analysts is a contrast to the situation three years ago when they were Dalal Street darlings for over a decade. The entry of deep-pocketed players like the Aditya Birla Group into the sector has resulted in companies focussing on fighting for market share, putting pressure on profitability. "The overall competitive intensity will remain high for the next two years," said Aniruddha Kekatpure, head of research at Edelweiss Mutual Fund. "If the new entrant executes better than expected, the stock prices of incumbents will likely continue to languish." Live Events The recent declines in paint shares have removed some froth of their valuations, which were considered among the most expensive in the consumer-facing businesses. "While valuations have moderated from their post-COVID highs, they continue to remain elevated amid persistent growth and margin pressures," Vaqarjaved Khan, senior fundamental analyst at Angel One. Khan said the estimated Price to Earnings (P/E) ratio - a popular valuation measure - for most paint companies still hovers around 48-55x, a rich multiple, especially when the growth outlook for FY26 appears clouded.
Business Standard
07-05-2025
- Business
- Business Standard
Kansai Nerolac slides as Q4 PAT tanks 77% QoQ to Rs 123 crore
Shares of Kansai Nerolac fell 1.56% to Rs 249.80 due to weak performance. On a standalone basis, Kansai Nerolacs net profit tumbled 76.54% to Rs 123.49 crore in Q4 FY25 as against Rs 526.46 crore in Q3 FY25. Revenue from operations fell 5.52% to Rs 1,740.43 crore in Q4 FY25 over Q3 FY25. PBT tanked 76.83% to Rs 163.83 crore in Q4 FY25 over Q3 FY25. On a year-on-year basis, the company's standalone net profit rose 21.61% while revenue from operations advanced 4.73% in Q4 FY25. PBT jumped 14.36% YoY. EBITDA for the fourth quarter stood at Rs 177.8 crores, reflecting a year-on-year decline of 0.7%. Commenting on the results, Pravin Chaudhari, managing director, Kansai Nerolac Paints, said, During the quarter, In Decorative, the growth drivers of Paint+, Construction Chemicals, Wood finishes and Projects continued to do well. There is a gradual recovery seen in overall demand for Decorative as compared to the previous quarter, though the category continued to see tight liquidity and lower spending on discretionary items. The demand for Automotive continued to be better than the market, based on various initiatives. Performance Coatings also continued to register strong growth on the basis of a strong order pipeline. The various initiatives launched by the company over the past 3 years continue to yield results for the company. During the quarter, raw material cost was benign, however forex continued to be volatile. Going forward, the forecast of a good monsoon should augur well for paint industry. On its outlook, the company stated that the size of the domestic paint industry is estimated at approximately Rs 75,000 crore as of March 2024. Robust growth in infrastructure, core sectors, automobiles, and real estate is expected to have a positive impact on long-term demand for paints across the industry. Meanwhile, the board recommended a total dividend of Rs 3.75 per share, including a special dividend of Rs 1.25 per shareunchanged from the previous year. Kansai Nerolac is one of the leading paint companies in India and is the leader in Industrial paints. The company has eight strategically located manufacturing units all over India and a strong dealer network across the country. The company manufactures a diversified range of products ranging from decorative paints coatings for homes, offices, hospitals, and hotels to sophisticated industrial coatings for most of the industries.
Reuters
06-05-2025
- Automotive
- Reuters
India's Kansai Nerolac posts surprise quarterly profit fall as costs bite
May 6 (Reuters) - India's Kansai Nerolac Paints ( opens new tab reported an unexpected decline in fourth-quarter profit on Tuesday, as an increase in expenses overshadowed "better-than-the-market" automotive demand. The company's consolidated net profit for the January-March quarter fell 7% to 1.08 billion rupees ($12.8 million) from a year ago. Analysts on average had estimated it to rise to 1.37 billion rupees, according to data compiled by LSEG. Revenue from operations rose about 3% to 18.17 billion rupees during the quarter, surpassing the estimate of 17.69 billion rupees. For further earnings highlights, click KEY CONTEXT Kansai is the first among the big paintmakers in India to report its quarterly results. Larger rival and market leader Asian Paints ( opens new tab is due to report its earnings later this week. Indian paintmakers have been grappling with weak retail demand as shoppers pivoted towards cheaper alternatives amid tighter competition following the entry of Grasim Industries ( opens new tab. However, analysts have noted that Kansai's diverse client base, which includes automakers, makes the company less exposed to the risks of retail demand slowdown, compared to some of its peers such as Asian Paints. In the reported quarter, automobile sales from makers to dealers rose across two-wheelers, three-wheelers, passenger and commercial vehicles, data shows, opens new tab. PEER COMPARISON * 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 JANUARY-MARCH STOCK PERFORMANCE -- All data from LSEG -- $1 = 84.2690 Indian rupees
