Broker starts Kansai Nerolac at Accumulate, sets ₹232 target
Kansai Nerolac posted 9.8% year-on-year revenue growth, while margins were pressured by mix and delayed price pass-through. The broker expects recovery from Q2FY27E, supported by price hikes and improving operating leverage.
Kansai Nerolac reported 9.8% YoY revenue growth, led by decorative and industrial coatings, but margins contracted on product mix and delayed price pass-through. Management expects margin recovery from Q2FY27E; the broker initiates Accumulate with a ₹232 target.
Why this matters
The call follows Kansai Nerolac adding 1,700 dealers alongside a ₹600 crore capacity push and reporting Q1 profit growth of 4.8% on ₹2,374 crore revenue.
Retail-company signals are accelerating, up 163222% QoQ.