HDFC Securities: Kansai Nerolac - Joined At The Hip With Auto
An employee places a lid on a tin of ready mixed blue paint inside a paints and coatings factory. (Photographer Jasper Juinen/Bloomberg)

HDFC Securities: Kansai Nerolac - Joined At The Hip With Auto

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Report

Kansai Nerolac Paints Ltd. No.1 of No. 3 in Industrial/Decorative Paints) remains joined at the hip with auto original equipment manufacturers, which are likely to see their second straight year of 16-18% volume declines (given auto slowdown/Covid-19).

Meanwhile, it has been beefing up its relatively less cyclical non-auto industrial portfolio.

In Decorative, Kansai Nerolac has outpaced bigger rivals over FY15-19, given its aggressive marketing and distribution push.

This trend, however, is unlikely to continue over FY20-23 as the company’s predisposition would likely be to safeguard margins/restrict advertisement and promotion spend amid the demand destruction and until auto recovery is in sight.

Click on the attachment to read the full report:

HDFC Securities Kansai Nerolac Initiating Coverage.pdf


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 brokerage 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.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.