India's Kansai Nerolac jumps to over 9-mth high on bets of market share expansion

Kansai Nerolac Paints

04/07/2023 08:27

** Shares of paint maker Kansai Nerolac Ltd  KANE.NS  rise
as much as 8.6% to 312.97 rupees - their highest since Oct. 4
    ** Morgan Stanley sees stock rising up to 375 rupees over
next 12 months in bull case scenario due to faster-than-expected
recovery in decorative market share and pickup in industrial
coatings
    ** Decorative paints segments accounts for a tenth of co's
earnings and has a low competitive intensity
    ** MS also revises TP to 233 rupees from 233.33 rupees to
reflect bonus issue of shares
    ** Stock most likely to drop to 217 rupees in brokerage's
base case which sees growth in decorative paints lag automotive
and industrial coatings, along with rise in marketing costs
    ** Sees rise in competitive intensity, higher input costs as
key risks for revenue and core margin growth, which could see
stock fall up to 166 rupees in bear case
    ** Over 1.4 mln shares change hands by 12:48 p.m. IST
    ** Nineteen analysts covering the stock rate it "hold" on
average; median PT is 328.67 rupees - Refinitiv data
    ** Stock up 9.6% YTD vs Nifty 500 index's  .NIFTY500  7.3% 
rise

 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))