Kansai Nerolac Paints Limited (KANSAINER) AI Stock Analysis

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Kansai Nerolac Paints Limited

(NSE:KANSAINER)

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Rating:70Outperform

Price Target:INR 194.00▲(9.95% Upside)

Action:upgraded

Date:08/09/26

The score is driven primarily by solid underlying financial strength from a conservatively financed balance sheet and positive cash flow, offset by a sharp 2026 profitability/margin deterioration. Technicals are supportive with price above major moving averages, while valuation (P/E ~27 with a ~1.27% yield) limits upside unless margins and earnings stability improve.

Positive Factors

Conservative Balance SheetVery low leverage gives Kansai Nerolac substantial financial flexibility and reduces balance-sheet pressure during weaker operating periods. The company can support investment and absorb earnings volatility without the same debt-servicing burden faced by more highly leveraged competitors.

Negative Factors

Sharp Margin CompressionThe sharp decline in gross and net margins indicates that recent revenue is converting into substantially less profit. If this lower profitability persists, it would reduce earnings power, weaken returns on capital, and limit the funds available for reinvestment or shareholder distributions.

Kansai Nerolac Paints Limited (KANSAINER) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 143.81B
Dividend Yield: 1.42%
Average Volume (3M): 25.31K
Price to Earnings (P/E): 23.8
Beta (1Y): 0.86
Revenue Growth: 5.24%
EPS Growth: -47.04%
Country: India
Employees: 3,859
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Kansai Nerolac Paints Limited Business Overview & Revenue Model

Company Description

Kansai Nerolac Paints Limited manufactures and supplies paints, varnishes, enamels, and lacquers in India. It offers interior and exterior wall paints, wood coatings, metal enamel paints, and ancillary paints, as well as adhesives and waterproofing p...

How the Company Makes Money

KANSAINER primarily makes money by selling paints and coatings to two broad end-markets: (1) decorative paints for households and buildings and (2) industrial coatings supplied to manufacturers. Revenue is generated from the sale of finished paint/co...

Kansai Nerolac Paints Limited Financial Statement Overview

Summary

Financial quality is supported by a very strong, low-leverage balance sheet (debt-to-equity ~0.05; Balance Sheet Score 88) and currently positive cash generation (Cash Flow Score 66). However, profitability weakened sharply in 2026 with significant gross and net margin compression (Income Statement Score 63), and returns (ROE) declined, making earnings power less stable near-term.

Income Statement

63Positive

Balance Sheet

88Very Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	82.63B	80.52B	77.87B	77.68B	75.05B	62.82B
Gross Profit	23.15B	20.85B	26.80B	26.87B	22.08B	18.25B
EBITDA	10.30B	10.57B	17.11B	17.81B	8.44B	6.74B
Net Income	6.00B	5.89B	11.43B	11.85B	4.74B	3.59B
Balance Sheet
Total Assets	0	87.11B	82.17B	74.10B	63.06B	57.09B
Cash, Cash Equivalents and Short-Term Investments	25.85B	25.87B	21.36B	15.81B	6.34B	3.13B
Total Debt	0	3.03B	2.96B	2.76B	2.87B	3.19B
Total Liabilities	-66.89B	20.22B	18.13B	18.11B	17.46B	15.58B
Stockholders Equity	66.89B	67.14B	64.23B	55.83B	45.34B	41.32B
Cash Flow
Free Cash Flow	986.30M	6.79B	3.46B	6.66B	2.85B	-1.94B
Operating Cash Flow	2.02B	8.92B	6.72B	9.03B	4.08B	247.70M
Investing Cash Flow	2.38B	-3.94B	-3.79B	-5.90B	-2.27B	2.50B
Financing Cash Flow	-3.65B	-3.90B	-3.66B	-2.49B	-1.33B	-3.09B

Kansai Nerolac Paints Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price176.45

Price Trends

50DMA186.75Negative

100DMA196.41Negative

200DMA199.36Negative

Market Momentum

MACD-1.75Negative

RSI42.18Neutral

STOCH31.88Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KANSAINER, the sentiment is Negative. The current price of 176.45 is below the 20-day moving average (MA) of 181.05, below the 50-day MA of 186.75, and below the 200-day MA of 199.36, indicating a bearish trend. The MACD of -1.75 indicates Negative momentum. The RSI at 42.18 is Neutral, neither overbought nor oversold. The STOCH value of 31.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KANSAINER.

Kansai Nerolac Paints Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:KANSAINER against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:INDIGOPNTS	77Outperform	INR 47.64B	29.54	―	0.50%	9.51%	13.64%
IN:KANSAINER	70Outperform	INR 142.72B	23.76	―	1.42%	5.24%	-47.04%
IN:ASIANPAINT	69Neutral	INR 2.22T	45.96	―	1.19%	12.37%	24.22%
IN:AKZOINDIA	62Neutral	INR 120.04B	6.74	―	9.63%	-11.34%	383.49%
IN:BERGEPAINT	59Neutral	INR 542.25B	44.55	―	0.86%	5.22%	6.57%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SHALPAINTS	53Neutral	INR 6.66B	-9.59	―	―	-10.48%	0.50%

* General Sector Average

Performance Comparison

IN:KANSAINER and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:KANSAINER	Kansai Nerolac Paints Limited	176.45	-69.67	-28.31%
IN:AKZOINDIA	Akzo Nobel India Limited	263.60	-57.30	-17.86%
IN:ASIANPAINT	Asian Paints Ltd.	2315.00	-171.76	-6.91%
IN:BERGEPAINT	Berger Paints India Limited	465.05	-70.01	-13.08%
IN:INDIGOPNTS	Indigo Paints Ltd	998.10	-2.11	-0.21%
IN:SHALPAINTS	Shalimar Paints Ltd	79.50	1.15	1.47%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 09, 2026

Kansai Nerolac Paints Limited AI Stock Analysis

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