InCred Equities - Kansai Nerolac Paints Limited

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	78,014	81,837	88,712	96,193
Operating EBITDA (Rsm)	10,278	10,564	11,353	12,251
Net Profit (Rsm)	11,758	6,937	7,713	8,223
Core EPS (Rs)	8.4	8.6	9.5	10.2
Core EPS Growth	(3.5%)	2.3%	11.2%	6.6%
FD Core P/E (x)	31.14	30.43	27.37	25.67
DPS (Rs)	5.6	6.6	7.8	9.2
Dividend Yield	3.20%	3.78%	4.46%	5.26%
EV/EBITDA (x)	19.28	18.62	17.28	15.98
P/FCFE (x)	(52.13)	11.94	33.50	23.90
Net Gearing	(23.3%)	(26.5%)	(26.8%)	(27.7%)
P/BV (x)	3.78	3.85	3.75	3.81
ROE	13.4%	12.5%	13.9%	14.7%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	78,014	81,837	88,712	96,193
Gross Profit	27,573	28,577	30,607	32,788
Operating EBITDA	10,278	10,564	11,353	12,251
Depreciation And Amortisation	(1,905)	(2,036)	(2,159)	(2,263)
Operating EBIT	8,373	8,529	9,194	9,989
Financial Income/(Expense)	627	848	1,231	1,436
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	8,999	9,377	10,425	11,424
Exceptional Items	6,613
Pre-tax Profit	15,612	9,377	10,425	11,424
Taxation	(3,854)	(2,440)	(2,712)	(3,202)
Exceptional Income - post-tax
Profit After Tax	11,758	6,937	7,713	8,223
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	11,758	6,937	7,713	8,223
Recurring Net Profit	6,778	6,937	7,713	8,223
Fully Diluted Recurring Net Profit	6,778	6,937	7,713	8,223

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	10,278	10,564	11,353	12,251
Cash Flow from Invt. & Assoc.
Change In Working Capital	301	3,071	(1,220)	748
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow
Net Interest (Paid)/Received	(292)	(284)	(310)	(310)
Tax Paid	(3,854)	(2,440)	(2,712)	(3,202)
Cashflow From Operations	6,433	10,911	7,111	9,488
Capex	(3,006)	(2,600)	(1,850)	(1,900)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments	(8,288)	8,229	(500)	(500)
Other Investing Cashflow	919	1,132	1,541	1,746
Cash Flow From Investing	(10,375)	6,761	(809)	(654)
Debt Raised/(repaid)	(106)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(6,754)	(7,969)	(9,404)	(11,097)
Preferred Dividends
Other Financing Cashflow	12,037	30	3,127	2,073
Cash Flow From Financing	5,178	(7,939)	(6,277)	(9,023)
Total Cash Generated	1,235	9,733	24	(190)
Free Cashflow To Equity	(4,049)	17,672	6,302	8,833
Free Cashflow To Firm	(3,650)	17,957	6,612	9,143

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	15,829	17,332	17,857	18,167
Total Debtors	13,349	10,854	11,250	10,931
Inventories	16,875	18,004	20,368	22,074
Total Other Current Assets	4,661	5,008	5,392	5,810
Total Current Assets	50,713	51,199	54,867	56,982
Fixed Assets	23,114	23,678	23,370	23,007
Total Investments	73	73	73	73
Intangible Assets	198	198	198	198
Total Other Non-Current Assets
Total Non-current Assets	23,385	23,949	23,640	23,278
Short-term Debt	1,360	1,360	1,360	1,360
Current Portion of Long-Term Debt
Total Creditors	13,505	16,138	18,061	20,614
Other Current Liabilities
Total Current Liabilities	14,865	17,498	19,421	21,974
Total Long-term Debt	1,404	1,404	1,404	1,404
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities
Total Non-current Liabilities	1,404	1,404	1,404	1,404
Total Provisions	1,842	1,262	1,262	1,262
Total Liabilities	18,111	20,164	22,088	24,641
Shareholders Equity	55,826	54,823	56,259	55,458
Minority Interests	160	160	160	160
Total Equity	55,986	54,984	56,420	55,619

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	3.4%	4.9%	8.4%	8.4%
Operating EBITDA Growth	25.6%	2.8%	7.5%	7.9%
Operating EBITDA Margin	13.2%	12.9%	12.8%	12.7%
Net Cash Per Share (Rs)	16.16	18.02	18.67	19.05
BVPS (Rs)	69.06	67.82	69.59	68.60
Gross Interest Cover	28.66	30.00	29.66	32.22
Effective Tax Rate	24.7%	26.0%	26.0%	28.0%
Net Dividend Payout Ratio	131.2%	114.9%	121.9%	135.0%
Accounts Receivables Days	60.19	53.97	45.47	42.08
Inventory Days	123.62	119.52	120.52	122.16
Accounts Payables Days	95.93	101.57	107.41	111.32
ROIC (%)	18.7%	20.5%	21.6%	24.1%
ROCE (%)	15.4%	14.4%	14.9%	15.8%
Return On Average Assets	6.6%	8.2%	8.4%	8.5%

(91) 22 4161 1561 rohan.kalle@incredresearch.com

(91) 22 4161 1564 nishant.bagrecha@incredresearch.com

(91) 2241611558 saurabh.singh@incredresearch.com

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Market Data

Source: Bloomberg