Fact based stock research
Kansai Nerolac Paints (BSE:500165)

INE531A01024

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Kansai Nerolac Paints stock research in summary

nerolac.com

ANALYSIS: With an Obermatt Combined Rank of 70 (better than 70% compared with investment alternatives), Kansai Nerolac Paints (Commodity Chemicals, India) shares have above-average financial characteristics compared with similar stocks. Shares of Kansai Nerolac Paints are a good value (attractively priced) with a consolidated Value Rank of 77 (better than 77% of alternatives), are safely financed (Safety Rank of 64, which means low debt burdens), but show below-average growth (Growth Rank of 39). ...read more

RECOMMENDATION: A Combined Rank of 70, is a buy recommendation based on Kansai Nerolac Paints's financial characteristics. As the company Kansai Nerolac Paints's key financial metrics exhibit good value (Obermatt Value Rank of 77) but low growth (Obermatt Growth Rank of 39) while being safely financed (Obermatt Safety Rank of 64), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 77% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	77
Growth Rank	39
Safety Rank	64
Combined Rank	70

Country	India
Industry	Commodity Chemicals
Index	Independent Boards Growth Markets, Renewables Users
Size class	Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Kansai Nerolac Paints

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	7	53	69	77
GROWTH
GROWTH	66	21	89	39
SAFETY
SAFETY	90	61	64	64
SENTIMENT
SENTIMENT	n/a	35	82	^new
360° VIEW
360° VIEW	n/a	35	98	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 31-Mar-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Kansai Nerolac Paints is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	7	53	69	77
GROWTH
GROWTH	66	21	89	39
SAFETY
SAFETY	90	61	64	64
COMBINED
COMBINED	50	41	97	70

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Kansai Nerolac Paints the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 77 (better than 77% compared with alternatives) for 2024, Kansai Nerolac Paints shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Kansai Nerolac Paints. Price-to-Sales is 71 which means that the stock price compared with what market professionals expect for future sales is lower than for 71% of comparable companies, indicating a good value for Kansai Nerolac Paints's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 55% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 73. Compared with other companies in the same industry, dividend yields of Kansai Nerolac Paints are expected to be higher than for 60% of all competitors (a Dividend Yield rank of 60). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 77, is a buy recommendation based on Kansai Nerolac Paints's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Kansai Nerolac Paints based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	10	55	67	71
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	30	11	42	55
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	14	47	59	73
DIVIDEND YIELD
DIVIDEND YIELD	59	61	60	60
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	7	53	69	77

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Kansai Nerolac Paints; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), Kansai Nerolac Paints shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Kansai Nerolac Paints. Profit Growth, with a rank of 76 (better than 76% of its competitors), and Capital Growth, with a rank of 65, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 33, which means that, currently, professionals expect the company to grow less than 67% of its competitors, and Stock Returns are at a rank of 17. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 39, is a hold recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	73	77	44	33
PROFIT GROWTH
PROFIT GROWTH	n/a	19	94	76
CAPITAL GROWTH
CAPITAL GROWTH	n/a	35	83	65
STOCK RETURNS
STOCK RETURNS	53	23	55	17
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	66	21	89	39

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Kansai Nerolac Paints.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 64 (better than 64% compared with alternatives), the company Kansai Nerolac Paints has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Kansai Nerolac Paints is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Kansai Nerolac Paints. Leverage is at 62, meaning the company has a below-average debt-to-equity ratio. It has less debt than 62% of its competitors. Refinancing is at a rank of 78, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 78% of its competitors. Finally, Liquidity is also good at a rank of 50, which means that the company generates more profit to service its debt than 50% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 64 (better than 64% compared with alternatives), Kansai Nerolac Paints has a financing structure that is safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Kansai Nerolac Paints but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	51	64	60	62
REFINANCING
REFINANCING	57	54	76	78
LIQUIDITY
LIQUIDITY	100	49	47	50
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	90	61	64	64

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Kansai Nerolac Paints and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	36	55	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	37	61	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	26	63	^new
MARKET PULSE
MARKET PULSE	n/a	81	67	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	35	82	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Kansai Nerolac Paints.
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