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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 60 (better than 60% 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 73 (better than 73% of alternatives), are safely financed (Safety Rank of 66, which means low debt burdens), but show below-average growth (Growth Rank of 21). ...read more

RECOMMENDATION: A Combined Rank of 60, 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 73) but low growth (Obermatt Growth Rank of 21) while being safely financed (Obermatt Safety Rank of 66), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 73% 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	73
Growth Rank	21
Safety Rank	66
Combined Rank	60

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

19-Dec-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	73
GROWTH
GROWTH	66	21	89	21
SAFETY
SAFETY	90	61	64	66
SENTIMENT
SENTIMENT	n/a	35	82	^new
360° VIEW
360° VIEW	n/a	35	98	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-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	73
GROWTH
GROWTH	66	21	89	21
SAFETY
SAFETY	90	61	64	66
COMBINED
COMBINED	50	41	97	60

Last update of combined financial performance: 19-Dec-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 73 (better than 73% compared with alternatives), Kansai Nerolac Paints shares are more attractively priced than the majority of 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 69 which means that the stock price compared with what market professionals expect for future sales is lower than for 69% 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 57% 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 69. Compared with other companies in the same industry, dividend yields of Kansai Nerolac Paints are expected to be higher than for 58% of all competitors (a Dividend Yield rank of 58). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 73, 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	69
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	30	11	42	57
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	14	47	59	69
DIVIDEND YIELD
DIVIDEND YIELD	59	61	60	58
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	7	53	69	73

Last update of Value Rank: 19-Dec-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 21 (better than 21% compared with alternatives), Kansai Nerolac Paints shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Kansai Nerolac Paints. While Profit Growth has a good rank of 79, as professionals currently expect the company to grow its profits more than 79% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 39, which means that currently professionals expect the company to grow less than 61% of its competitors, while Capital Growth has a rank of 9 and Stock Returns have been below market median, with a rank of 19 (81% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 21, is a sell recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. 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 limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	73	77	44	39
PROFIT GROWTH
PROFIT GROWTH	n/a	19	94	79
CAPITAL GROWTH
CAPITAL GROWTH	n/a	35	83	9
STOCK RETURNS
STOCK RETURNS	53	23	55	19
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	66	21	89	21

Last update of Growth Rank: 19-Dec-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 66 (better than 66% 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 two out of 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 74, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 74% of its competitors. Liquidity is at 49, meaning that the company generates less profit to service its debt than 51% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 66 (better than 66% compared with alternatives), Kansai Nerolac Paints has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Kansai Nerolac Paints more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	51	64	60	62
REFINANCING
REFINANCING	57	54	76	74
LIQUIDITY
LIQUIDITY	100	49	47	49
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	90	61	64	66

Last update of Safety Rank: 19-Dec-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: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Kansai Nerolac Paints.
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