Kansai Nerolac (KANSAINER)

FairStock Score: 39/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at Kansai Nerolac at ₹204.75, a ₹16,560 Cr paints business with promoter holding of 74.98% and debt/equity of just 0.05. That conservative balance sheet and positive free cash flow of ₹293 Cr are comforting. The latest quarter had sales of ₹1,982 Cr and net profit of ₹117 Cr. But the financials do not scream bargain. P/E is 27.63, P/B is 2.47, and book value is ₹83.02. ROE is 10.87% and ROCE is 13.03%, respectable but not exceptional. Sales growth of 9.80% is decent, yet profit growth of 4.80% lags badly, and the 5-year revenue CAGR is 8.18%. The PEG ratio of 8.51 tells me the market is paying a rich price for low growth. The Piotroski F-Score of 4/9 and FairStock Score of 39/100 confirm a mixed picture. Dividend yield is only 1.20%. At the current price, the market cap is ₹16,560 Cr, and the 52-week range is ₹157.91 to ₹264.00, so it is not at a frothy high, but it is also not statistically cheap. Graham would ask for a margin of safety; I don't see enough here. Buffett would want a durable moat and rising returns on capital; the low debt helps, but ROE and ROCE need improvement. I would classify it as a Slow Grower. I would wait for profit growth to catch up with sales, ROE/ROCE to expand, and the valuation to become more reasonable before getting excited.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer