BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
Kansai Nerolac Paints Ltd.'s result was below our estimates due to higher than expected inflation in raw material cost.
Demand in decorative coating business remained resilient during days when lockdown restrictions were minimal.
Positively, growth stood higher than volume growth driven by higher contribution from emulsions.
Also, management guides to maintain focus on premium portfolio as, due to inflation, products (like putty) will put pressure on operating margins due to inferior economics.
Inflation continues to put pressure on gross margin.
Kansai Nerolac guides for more price hikes to offset inflation going forward. However, taking price hike in industrial coatings will be relatively tougher.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.