Kansai Nerolac Paints Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Kansai Nerolac Paints Ltd trades at ₹201, in a downtrend and 87 weeks into that stage. That is −7.1% against its own 200-day average. It sits at 40% of a 52-week range of ₹167 to ₹254. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (3 weeks and counting).

Today the stock is in a downtrend — week 87 of stage 4, confirmed. At ₹201 it trades −7.1% versus its 200-day average and sits at 40% of its 52-week range (₹167–₹254).

Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +9% while the NIFTY 500 moved +274% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (3 weeks and counting; last ahead the week of 2026-07-01) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 3rd percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Kansai Nerolac Paints Ltd trades at 27.0× P/E, near the bottom of its own range — cheaper only 3% of the time. Its long-run median P/E is 49.9×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 27.0× is near the bottom of its own range — cheaper only 3% of the time, against a long-run median of 49.9× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved −48.4% against a −18.9% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the −12.8%/yr price move, ~+2.1%/yr came from earnings growth and ~−14.9 pp from the multiple (compressing); over 10y, of the −0.5%/yr price move, ~+2.1%/yr came from earnings growth and ~−2.6 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

The PEG ratio and its quarterly curve, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 5.8% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Improving Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Kansai Nerolac Paints Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 6 quarters ago at −31.4% and has held its recovery at +7.8% (single-quarter readings), ROCE holding at 12.0%. The read is built from 10 quarters across 3 curves, on partial evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

43.9/100 — rank 5 of 6 in Building Materials - Paints · 83% evidence confidence

Kansai Nerolac Paints Ltd scores 43.9 out of 100 against the 6 companies it is compared with in Building Materials - Paints, ranking 5. Cheap but unconfirmed: require improving earnings before treating the valuation as an opportunity.

The four contributions add to the total exactly: 13.7 + 9.9 + 14.9 + 5.4 = 43.9. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Kansai Nerolac Paints Ltd reported ₹1,954 Cr of revenue in the Mar 26 quarter, +7.5% year on year. That is the 6th straight quarter of year-on-year growth. Over 10 years it has compounded at 7.9% a year. The last full year, FY26, came in at ₹8,052 Cr. The last four reported quarters add to ₹8,052 Cr.

Kansai Nerolac Paints Ltd reported ₹1,954 Cr of revenue in the Mar 26 quarter, +7.5% year on year. That is the 6th straight quarter of year-on-year growth. Over 10 years it has compounded at 7.9% a year. The last full year, FY26, came in at ₹8,052 Cr. The last four reported quarters add to ₹8,052 Cr.

FY26 revenue came in at ₹8,052 Cr (+2.9% on the year), capping 10 years at 7.9% compound. The latest quarter (Mar 26) printed ₹1,954 Cr, +7.5% year on year — the 6th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +3.0% growth against the decade's 7.9% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +2.9% over the last 4 quarters against +1.6%/yr over the last 8 — stabilising; TTM profit −48.1% vs −30.0%/yr — rolling over.

→ Revenue grew — did margins hold as it scaled? Next: 11.0% this quarter (+2.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Kansai Nerolac Paints Ltd's operating margin is 11.0% in the Mar 26 quarter, +2.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0% to 18.0%. The current quarter sits inside that band.

Kansai Nerolac Paints Ltd's operating margin is 11.0% in the Mar 26 quarter, +2.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0% to 18.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 11.0%, +2.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0%–18.0%.

Why the margin moved: operating margin went +2.0 pp year on year while gross margin went +0.2 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins held — did that reach the bottom line? Next: profit +7.8% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Kansai Nerolac Paints Ltd earned ₹110 Cr of net profit in the Mar 26 quarter, +7.8% year on year. Full-year FY26 profit was ₹576 Cr. The 10-year compound rate is −4.4%. That is 5.6% of the quarter's revenue. The same quarter a year earlier earned ₹102 Cr.

Kansai Nerolac Paints Ltd earned ₹110 Cr of net profit in the Mar 26 quarter, +7.8% year on year. Full-year FY26 profit was ₹576 Cr. The 10-year compound rate is −4.4%. That is 5.6% of the quarter's revenue. The same quarter a year earlier earned ₹102 Cr.

Mar 26 profit was ₹110 Cr, +7.8% year on year. On the full year, FY26 printed ₹576 Cr (−48.1%), and the 10-year compound rate is −4.4%.

Why profit moved: revenue contributed +7.5% and the margin +2.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit −16.9% vs revenue +3.0%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 86% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 86% of Kansai Nerolac Paints Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹894 Cr of operating cash against ₹576 Cr of profit. After ₹335 Cr of capital spending, ₹559 Cr was left as free cash.

FY26: operating cash of ₹894 Cr against reported profit of ₹576 Cr, leaving free cash of ₹559 Cr after ₹335 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 86% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 86%: the cash cycle tightened 12 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 1.6× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹978 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Kansai Nerolac Paints Ltd's cash conversion cycle runs 95 days in FY26, down from 107 days in FY21. Capital spending ran ₹978 Cr over the last 3 years. At FY26 sales of ₹8,052 Cr each day of that cycle holds about ₹22.1 Cr, so roughly ₹2,096 Cr sits inside the business at any moment.

FY26: debtors at 67 days, inventory at 119 days — roughly 3.9 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 95 days, tighter than FY21's 107.

The full loop: cash goes out to suppliers and production on day 0; stock waits 119 days to sell; customers pay about 67 days after that; and suppliers themselves are paid at 91 days — netting out to the 95-day cycle.

In money terms: at FY26 sales of ₹8,052 Cr, each day of the cycle holds about ₹22.1 Cr — so the 95-day loop keeps roughly ₹2,096 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹978 Cr over the last 3 fiscal years against ₹620 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹175 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 12%.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Kansai Nerolac Paints Ltd earns a ROCE of 12% in FY26. That is up from a trough of 11% in FY22. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 7.2% net margin on 0.92× asset turns.

FY26 ROCE is 12%, recovered from a FY22 trough of 11% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 7.2% net margin × 0.92× asset turns × 1.30× balance-sheet leverage ≈ 8.6% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The quarterly return curves and the return-on-invested-capital overlay, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 5.8% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.05.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Kansai Nerolac Paints Ltd carries ₹303 Cr of borrowings against ₹6,714 Cr of equity in FY26, a debt-to-equity of 0.05. Operating profit covers the interest bill 31×. Over 5 years borrowings went from ₹173 Cr to ₹303 Cr. Capital spending ran ₹978 Cr across the last 3 of those years.

FY26: borrowings of ₹303 Cr against equity of ₹6,714 Cr — a debt-to-equity of 0.05. Operating profit covers the interest bill 31×. Over 5 years borrowings went from ₹173 Cr to ₹303 Cr while capital spending ran ₹978 Cr in just the last 3 — part of the build-out is riding on borrowed money.

The total-debt and debt-to-equity series, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 5.8% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 1.2 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 1.2 points of Kansai Nerolac Paints Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 11.9% of the company. Foreign institutions moved −1.1 points over the same window, to 4.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +1.2 points over 8 quarters to 11.9%; Foreign institutions: −1.1 points over 8 quarters to 4.0%; Promoters: +0.0 points over 8 quarters to 75.0%.

Why the register moved: domestic institutions drove it (+1.2 points), absorbed on the other side by foreign institutions (−1.1 points) — steady accumulation by institutions reading the same numbers this page reads.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Kansai Nerolac Paints Ltd: the Z-score is withheld — it comes from the second data source this page could not reconcile, and a solvency score is not worth printing on a number two sources dispute. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

The safety line in one sentence: the Z-score is withheld — it comes from the second data source this page could not reconcile, and a solvency score is not worth printing on a number two sources dispute.

Frequently asked questions