Kansai Nerolac Paints (KNPL IN) – Analyst Meet Update – Industrial/Auto to lead growth, outlook healthy – Accumulate
Published on 26 Feb 2026
Decorative business is expected to recover in the medium term. Although competitive intensity is expected to remain high, KNPL remains confident of stability over the next 1-2 quarters led by improving demand scenario. KNPL’s gave a constructive outlook with focus on industrial paints and automotive segment while steady growth is expected in decorative paints. KNPL remains confident of growing faster than Industry growth.
We expect little scope to increase margins as lower margin Industrial Paints have better growth prospects and decorative outlook is uncertain in near term. We expect 7.9% EPS CAGR over FY26-28. KNPL is currently trading at 20.7x FY28 EPS, which factors in most negatives, however the stock lacks any immediate triggers. Retain Accumulate with TP of Rs248 (No change).
