India's Kansai Nerolac Q1 adjusted profit rises on automotive demand

Kansai Nerolac Paints

29/07/2024 11:08

BENGALURU, July 29 (Reuters) - India's Kansai Nerolac Paints  KANE.NS  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  4613.T , 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  GRAS.NS  earlier this year,
prompting companies to lower prices to prop up sales.
    India's biggest paint maker Asian Paints  ASPN.NS  missed quarterly profit estimates due to declining demand and
price cuts. 
    Berger Paints  BRGR.NS  and Akzo Nobel India  AKZO.NS  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   KANE.NS    29.83    18.59     8.77        25.53     Hold            11      0.87           0.91
 Asian Paints            ASPN.NS    53.46    36.78     6.39        -2.63     Hold            34      1.01           1.15
 Berger Paints India     BRGR.NS    49.04    30.79     8.16        4.54      Sell            20      1.08           0.66
 Akzo Nobel India        AKZO.NS    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 
    
    

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
APRIL-JUNE STOCK PERFORMANCE    https://tmsnrt.rs/3A0ame3
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Hritam Mukherjee and Anisha Ajith in Bengaluru; Editing by Mrigank Dhaniwala)
 ((anisha.ajith@thomsonreuters.com;))