InCred Equities - Kansai Nerolac Paints Limited

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	78,014	79,020	85,698	92,968
Operating EBITDA (Rsm)	10,278	10,068	10,829	11,695
Net Profit (Rsm)	11,758	6,570	7,325	7,822
Core EPS (Rs)	8.4	8.1	9.1	9.7
Core EPS Growth	(3.5%)	(3.1%)	11.5%	6.8%
FD Core P/E (x)	28.66	29.57	26.52	24.83
DPS (Rs)	5.6	6.6	7.8	9.2
Dividend Yield	3.48%	4.10%	4.84%	5.71%
EV/EBITDA (x)	17.64	17.84	16.57	15.35
P/FCFE (x)	(47.98)	10.84	32.64	23.13
Net Gearing	(23.3%)	(27.1%)	(26.9%)	(27.3%)
P/BV (x)	3.48	3.57	3.50	3.58
ROE	13.4%	11.9%	13.3%	14.2%
% 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	79,020	85,698	92,968
Gross Profit	27,573	27,592	29,568	31,692
Operating EBITDA	10,278	10,068	10,829	11,695
Depreciation And Amortisation	(1,905)	(2,036)	(2,159)	(2,263)
Operating EBIT	8,373	8,033	8,670	9,432
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	8,881	9,901	10,868
Exceptional Items	6,613
Pre-tax Profit	15,612	8,881	9,901	10,868
Taxation	(3,854)	(2,311)	(2,576)	(3,046)
Exceptional Income - post-tax
Profit After Tax	11,758	6,570	7,325	7,822
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	11,758	6,570	7,325	7,822
Recurring Net Profit	6,778	6,570	7,325	7,822
Fully Diluted Recurring Net Profit	6,778	6,570	7,325	7,822

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	10,278	10,068	10,829	11,695
Cash Flow from Invt. & Assoc.
Change In Working Capital	301	3,690	(1,182)	712
(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)	(2,311)	(2,576)	(3,046)
Cashflow From Operations	6,433	11,162	6,760	9,051
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	9,985	(326)	(627)
Free Cashflow To Equity	(4,049)	17,924	5,951	8,397
Free Cashflow To Firm	(3,650)	18,208	6,261	8,707

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	15,829	17,584	17,758	17,631
Total Debtors	13,349	10,507	10,895	10,596
Inventories	16,875	17,379	19,666	21,323
Total Other Current Assets	4,661	4,840	5,212	5,617
Total Current Assets	50,713	50,310	53,532	55,168
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	15,616	17,481	19,956
Other Current Liabilities
Total Current Liabilities	14,865	16,976	18,841	21,316
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	19,643	21,508	23,983
Shareholders Equity	55,826	54,456	55,504	54,302
Minority Interests	160	160	160	160
Total Equity	55,986	54,617	55,664	54,463

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	3.4%	1.3%	8.5%	8.5%
Operating EBITDA Growth	25.6%	(2.0%)	7.6%	8.0%
Operating EBITDA Margin	13.2%	12.7%	12.6%	12.6%
Net Cash Per Share (Rs)	16.16	18.33	18.55	18.39
BVPS (Rs)	69.06	67.36	68.66	67.17
Gross Interest Cover	28.66	28.25	27.97	30.43
Effective Tax Rate	24.7%	26.0%	26.0%	28.0%
Net Dividend Payout Ratio	131.2%	121.3%	128.4%	141.9%
Accounts Receivables Days	60.19	55.10	45.58	42.19
Inventory Days	123.62	121.55	120.45	122.08
Accounts Payables Days	95.93	103.34	107.61	111.50
ROIC (%)	18.7%	19.6%	20.7%	23.1%
ROCE (%)	15.3%	13.6%	14.1%	15.1%
Return On Average Assets	6.6%	7.7%	8.0%	8.2%

(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