ADD on Kansai Nerolac - Performance lags leader - HDFC Securities
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Mr. Jay Gandhi, Institutional Research Analyst, HDFC Securities
KNPL s 3Q performance (18% YoY; Rs. 14.7bn vs HSIE: Rs. 14.3bn) was nothing to scoff at. However, it s decorative segment (volume/value growth estimated at 23/18.6%) did lag that of market leader APNT (33/26% YoY). Industrial Coating grew at 17% (off a low base). Performance gap was attributed to higher primers/putties sold by the leader. GM expansion lagged that of APNT s (93bp YoY to 39.2% vs APNT +207bp) as mix continues to normalise in favour of low-margin industrials business. While the all-round demand recovery is heartening, RM inflation could weigh on profitability, going forward (already factored in). We largely maintain our EPS estimates and DCF-based TP of Rs. 650/sh (implying 51x Sept-22 P/E).
Buy Kansai Nerolac Paints; Target Of Rs 675: ICICI Direct moneycontrol.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneycontrol.com Daily Mail and Mail on Sunday newspapers.
Shares of Indigo Paints more than doubled on their stock market debut on Tuesday. The sharp rally in the stock took price-to-earnings (P/E) of the country’s fifth largest paint maker way past bigger peers such as Asian Paints and Berger Paints. The stock ended at Rs 3,129, with a gain of 2.1 times over the issue price of Rs 1,490. It could have gained more if not for the 20 per cent trading limit over the discovered price. Market players attributed part of the gains to short-covering. Indigo’s stellar debut becomes on the back of hugely oversubscribed IPO, that saw 117 times more demand than the shares on offer.
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Nifty futures on the Singapore Exchange traded 19 points, or 0.14 per cent, lower at 13,701.50 in signs that Dalal Street was headed for a muted start on Monday. Here are a few stocks which may buzz the most in today s trade:
Kansai Nerolac, Castrol India: Kansai Nerolac, Castrol India, Zydus Wellness, Coromandel International, Finolex Industries, MRPL, Mastek, Subex,
Reliance Infra, Reliance Capital and Rane Brake Lining are among major companies which will announce their December quarter results today.
PVR, Inox Leisure: Cinema halls across the country will be permitted to operate at full capacity from February 1 with adherence to COVID-19 safety protocols, Union Minister for Information and Broadcasting (I&B) Prakash Javadekar announced on Sunday.
Nifty, Sensex to push higher – Monday closing report
Moneylife Digital Team
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We had mentioned in previous week’s closing report that Nifty, Sensex may try to recover. On Monday, the major indices posted huge gains on announcement of the Union Budget. On the NSE, there were 1,357 advances, 567 declines and 82 unchanged.
The trends of the major indices in the course of Monday’s trading are given in the table below:
In the Union Budget, finance minister Nirmala Sitharaman announced a Bill to set up a DFI (development finance institution) with a capital of Rs20,000 crore to provide lending of at least Rs5 lakh crore. A “National Monetization Pipeline” of potential Brownfield infrastructure assets will be launched. She also proposed to amend the Insurance Act, 1938 to increase the permissible FDI limit from 49% to 74% and allow foreign ownership and control with safeguards.