InCred Equities - Kansai Nerolac Paints Limited

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue (Rsm)	78,230	81,463	85,614	90,643
Operating EBITDA (Rsm)	9,423	9,871	10,465	11,496
Net Profit (Rsm)	4,798	6,639	7,157	7,963
Core EPS (Rs)	5.9	8.2	8.9	9.9
Core EPS Growth	(29.2%)	38.4%	7.8%	11.3%
FD Core P/E (x)	41.70	30.14	27.96	25.13
DPS (Rs)	6.6	7.8	9.2	10.8
Dividend Yield	3.98%	4.70%	5.55%	6.54%
EV/EBITDA (x)	19.26	19.43	18.11	16.48
P/FCFE (x)	(56.92)	24.03	19.62	16.79
Net Gearing	(28.7%)	(12.5%)	(16.3%)	(17.5%)
P/BV (x)	3.11	3.07	3.13	3.36
ROE	8.0%	10.3%	11.1%	12.9%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Net Revenues	78,230	81,463	85,614	90,643
Gross Profit	27,537	28,316	29,406	31,275
Operating EBITDA	9,423	9,871	10,465	11,496
Depreciation And Amortisation	(2,017)	(2,134)	(2,237)	(2,343)
Operating EBIT	7,406	7,737	8,227	9,153
Financial Income/(Expense)	1,079	1,247	1,457	1,620
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	8,485	8,985	9,685	10,772
Exceptional Items
Pre-tax Profit	8,485	8,985	9,685	10,772
Taxation	(3,687)	(2,346)	(2,527)	(2,810)
Exceptional Income - post-tax
Profit After Tax	4,798	6,639	7,157	7,963
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	4,798	6,639	7,157	7,963
Recurring Net Profit	4,798	6,639	7,157	7,963
Fully Diluted Recurring Net Profit	4,798	6,639	7,157	7,963

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
EBITDA	9,423	9,871	10,465	11,496
Cash Flow from Invt. & Assoc.
Change In Working Capital	(1,730)	(11,556)	3,204	4,010
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow
Net Interest (Paid)/Received	(313)	(315)	(318)	(320)
Tax Paid	(3,687)	(2,346)	(2,527)	(2,810)
Cashflow From Operations	3,694	(4,346)	10,823	12,376
Capex	(3,556)	(1,850)	(1,900)	(1,900)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments	(5,244)	12,960	(500)	(500)
Other Investing Cashflow	1,392	1,562	1,775	1,940
Cash Flow From Investing	(7,408)	12,672	(625)	(460)
Debt Raised/(repaid)	200
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(7,969)	(9,404)	(11,097)	(13,094)
Preferred Dividends
Other Financing Cashflow	11,276	3,750	2,712	659
Cash Flow From Financing	3,506	(5,654)	(8,385)	(12,434)
Total Cash Generated	(208)	2,673	1,814	(519)
Free Cashflow To Equity	(3,515)	8,326	10,199	11,915
Free Cashflow To Firm	(3,402)	8,641	10,517	12,235

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Cash And Equivalents	21,360	11,073	13,387	13,368
Total Debtors	13,567	16,179	16,007	15,450
Inventories	16,651	20,890	20,207	19,590
Total Other Current Assets	5,829	8,495	9,333	8,674
Total Current Assets	57,407	56,636	58,934	57,082
Fixed Assets	24,653	24,369	24,032	23,589
Total Investments	86	86	86	86
Intangible Assets	25	25	25	25
Total Other Non-Current Assets
Total Non-current Assets	24,763	24,480	24,142	23,700
Short-term Debt	1,209	1,209	1,209	1,209
Current Portion of Long-Term Debt
Total Creditors	12,999	11,477	14,666	16,842
Other Current Liabilities
Total Current Liabilities	14,208	12,687	15,875	18,052
Total Long-term Debt	1,755	1,755	1,755	1,755
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities
Total Non-current Liabilities	1,755	1,755	1,755	1,755
Total Provisions	2,163	1,645	1,645	1,645
Total Liabilities	18,126	16,086	19,274	21,451
Shareholders Equity	64,232	65,217	63,989	59,517
Minority Interests	(187)	(187)	(187)	(187)
Total Equity	64,045	65,030	63,802	59,330

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue Growth	0.3%	4.1%	5.1%	5.9%
Operating EBITDA Growth	(8.3%)	4.8%	6.0%	9.9%
Operating EBITDA Margin	12.0%	12.1%	12.2%	12.7%
Net Cash Per Share (Rs)	22.76	10.03	12.89	12.87
BVPS (Rs)	79.46	80.67	79.15	73.62
Gross Interest Cover	23.70	24.56	25.87	28.60
Effective Tax Rate	43.5%	26.1%	26.1%	26.1%
Net Dividend Payout Ratio	166.1%	141.7%	155.0%	164.4%
Accounts Receivables Days	62.79	66.64	68.61	63.33
Inventory Days	120.69	128.91	133.44	122.34
Accounts Payables Days	95.41	84.05	84.88	96.86
ROIC (%)	15.5%	13.2%	15.0%	18.1%
ROCE (%)	11.7%	10.8%	11.3%	13.2%
Return On Average Assets	4.8%	6.6%	6.9%	7.7%

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

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

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Market Data

Source: Bloomberg