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  4. /Kansai Nerolac Paints Ltd
MomentumDeep Value

Kansai Nerolac Paints Ltd: Why Is It Outperforming Nifty 500?

Active
RS +14.7%AverageRe-Entry

In Week of Jun 27, 2026, Kansai Nerolac Paints Ltd (Building Materials - Paints) is outperforming Nifty 500 with +14.7% relative strength. Fundamentals: Average.

Kansai Nerolac Paints Ltd Key Facts

PE Ratio
29.7x
Market Cap
₹17,178 Cr
PAT Growth YoY
+8%
Revenue Growth YoY
+8%
OPM
11.0%
RS vs Nifty 500
+14.7%
PE: Cycle BottomFalling Knife

What's Happening

🔻Earnings declining and PE falling — fundamentals deteriorating
💰Trading 78% above estimated fair value — significant premium

Key Numbers

PAT Growth YoY
+8%
Inflection Up
Revenue YoY
+8%
Stable
Operating Margin
11.0%
+200 bps YoY
PE Ratio
29.7
Current Price
₹212
Dividend Yield
1.18%
Fundamental Score
43/100
Average
3Y PAT CAGR
+7%
Market Cap
17.2K Cr
Valuation
Significantly Overvalued

12-Week Performance

Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.

12 weeks agoThis week

How Fast Is Kansai Nerolac Paints Ltd Growing?

Revenue, profit and margin growth rates

MetricYoY3Y CAGRTrend
Revenue+8%+2%Stable
PAT (Net Profit)+8%+7%Inflection Up
OPM11.0%+200 bpsExpanding

Other Top Building Materials - Paints Stocks Beating Nifty 500

Asian Paints Ltd
Average • 6w streak
+8.9%
Berger Paints India Ltd
Average • 6w streak
+19.0%
← Back to Building Materials - PaintsDashboard

Frequently Asked Questions: Kansai Nerolac Paints Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What were Kansai Nerolac Paints Ltd's latest quarterly results?

Kansai Nerolac Paints Ltd's latest quarterly results (Mar 2026) show

  • PAT Growth YoY: +7.8% (turning around (inflection up))
  • Revenue Growth YoY: +7.5%
  • Operating Margin: 11.0% (expanding)

Is Kansai Nerolac Paints Ltd's profit growing or declining?

Kansai Nerolac Paints Ltd's profit is growing with an turning around (inflection up) trend.

  • PAT Growth YoY: +7.8% (latest quarter)
  • PAT Growth QoQ: -6.0% (sequential)
  • 3-Year PAT CAGR: +7.2%
  • Trend: Turning around (inflection up) — consistent growth pattern

What is Kansai Nerolac Paints Ltd's revenue growth trend?

Kansai Nerolac Paints Ltd's revenue growth trend is stable.

  • Revenue Growth YoY: +7.5%
  • Revenue Growth QoQ: -1.4% (sequential)
  • 3-Year Revenue CAGR: +2.2%

How is Kansai Nerolac Paints Ltd's operating margin trending?

Kansai Nerolac Paints Ltd's operating margin is expanding.

  • Current OPM: 11.0%
  • OPM Change YoY: +2.0% basis points
  • OPM Change QoQ: -1.0% basis points

What is Kansai Nerolac Paints Ltd's 3-year profit and revenue CAGR?

Kansai Nerolac Paints Ltd's long-term compounding rates

  • 3-Year Profit CAGR: +7.2%
  • 3-Year Revenue CAGR: +2.2%

Is Kansai Nerolac Paints Ltd's growth accelerating or decelerating?

Kansai Nerolac Paints Ltd's earnings growth is turning around (inflection up) with negative momentum on a sequential basis.

  • YoY Acceleration: +87.8% bps
  • Sequential Acceleration: +6.0% bps

What is Kansai Nerolac Paints Ltd's trailing twelve month (TTM) performance?

Kansai Nerolac Paints Ltd's trailing twelve month (TTM) performance

  • TTM PAT: ₹576 Cr
  • TTM PAT Growth: -48.1% YoY
  • TTM Revenue: ₹8,000 Cr
  • TTM Revenue Growth: +2.9% YoY
  • TTM Operating Margin: 12.1%

Is Kansai Nerolac Paints Ltd overvalued or undervalued?

Kansai Nerolac Paints Ltd appears significantly overvalued based on our fair value analysis.

  • Valuation Signal: Significantly Overvalued
  • Current PE: 29.7x
  • Price-to-Book: 2.5x

What is Kansai Nerolac Paints Ltd's current PE ratio?

Kansai Nerolac Paints Ltd's current PE ratio is 29.7x.

  • Current PE: 29.7x
  • Market Cap: 17.2K Cr
  • Dividend Yield: 1.18%

How does Kansai Nerolac Paints Ltd's valuation compare to its history?

Kansai Nerolac Paints Ltd's current PE is 29.7x.

  • Current PE: 29.7x
  • Valuation Assessment: Significantly Overvalued

What is Kansai Nerolac Paints Ltd's price-to-book ratio?

Kansai Nerolac Paints Ltd's price-to-book ratio is 2.5x.

  • Price-to-Book (P/B): 2.5x
  • Book Value per Share: ₹83
  • Current Price: ₹212

Is Kansai Nerolac Paints Ltd a fundamentally strong company?

Kansai Nerolac Paints Ltd is rated Average with a fundamental score of 43.2/100. This score is calculated from objective financial metrics

  • Revenue Growth YoY: +7.5% (10% weight)
  • PAT Growth YoY: +7.8% (10% weight)
  • PAT Growth QoQ: -6.0% (10% weight)
  • Margins expanding (10% weight)

Is Kansai Nerolac Paints Ltd debt free?

Kansai Nerolac Paints Ltd has a debt-to-equity ratio of N/A.

  • Total Debt: ₹303 Cr

What is Kansai Nerolac Paints Ltd's return on equity (ROE) and ROCE?

Kansai Nerolac Paints Ltd's return ratios over recent years

  • FY2024: ROCE 17.0%
  • FY2025: ROCE 13.0%
  • FY2026: ROCE 12.0%

Is Kansai Nerolac Paints Ltd's cash flow positive?

Kansai Nerolac Paints Ltd's operating cash flow is positive (FY2026).

  • Cash from Operations (CFO): ₹894 Cr
  • Free Cash Flow (FCF): ₹511 Cr
  • CFO/PAT Ratio: 155% (strong cash conversion)

What is Kansai Nerolac Paints Ltd's dividend yield?

Kansai Nerolac Paints Ltd's current dividend yield is 1.18%.

  • Dividend Yield: 1.18%
  • Current Price: ₹212

Who holds Kansai Nerolac Paints Ltd shares — promoters, FII, DII?

Kansai Nerolac Paints Ltd's shareholding pattern (Mar 2026)

  • Promoters: 75.0%
  • FII (Foreign): 3.6%
  • DII (Domestic): 11.9%
  • Public: 9.5%

Is promoter holding increasing or decreasing in Kansai Nerolac Paints Ltd?

Kansai Nerolac Paints Ltd's promoter holding has decreased recently.

  • Current Promoter Holding: 75.0% (Mar 2026)
  • Previous Quarter: 75.0% (Dec 2025)
  • Change: -0.02% (decreasing — worth monitoring)

How long has Kansai Nerolac Paints Ltd been outperforming Nifty 500?

Kansai Nerolac Paints Ltd has been outperforming Nifty 500 for 2 consecutive weeks, indicating early-stage outperformance.

Is Kansai Nerolac Paints Ltd a new momentum entry or an established outperformer?

Kansai Nerolac Paints Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.

Is Kansai Nerolac Paints Ltd worth studying for long term investment?

Based on quantitative research signals, here is why Kansai Nerolac Paints Ltd may be worth studying

  • Earnings growing at +7.8% YoY
  • Operating margins are expanding — OPM at 11.0%
  • Cash flow is positive — CFO ₹894 Cr

What is the investment thesis for Kansai Nerolac Paints Ltd?

Kansai Nerolac Paints Ltd investment thesis summary:

Research Signals (Bull Case)

  • Margins expanding

Risk Factors (Bear Case)

  • Appears significantly overvalued

What is the future outlook for Kansai Nerolac Paints Ltd?

Kansai Nerolac Paints Ltd's forward outlook based on current data signals

  • Earnings Trend: turning around (inflection up)
  • Revenue Trend: stable
  • Margin Trend: expanding
  • Valuation: Significantly Overvalued

The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.