Kansai Nerolac Paints Limited
Kansai Nerolac Paints Limited Fundamental Analysis
Kansai Nerolac Paints Limited (KANSAINER.BO) shows weak financial fundamentals with a PE ratio of 29.86, profit margin of 7.32%, and ROE of 9.06%. The company generates $80.6B in annual revenue with moderate year-over-year growth of 3.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KANSAINER.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakKANSAINER.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateKANSAINER.BO shows balanced valuation metrics.
Growth Score
WeakKANSAINER.BO faces weak or negative growth trends.
Financial Health Score
ExcellentKANSAINER.BO maintains a strong and stable balance sheet.
Profitability Score
WeakKANSAINER.BO struggles to sustain strong margins.
Key Financial Metrics
Is KANSAINER.BO Expensive or Cheap?
P/E Ratio
KANSAINER.BO trades at 29.86 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KANSAINER.BO's PEG of -0.62 indicates potential undervaluation.
Price to Book
The market values Kansai Nerolac Paints Limited at 2.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.77 times EBITDA. This signals the market has high growth expectations.
How Well Does KANSAINER.BO Make Money?
Net Profit Margin
For every $100 in sales, Kansai Nerolac Paints Limited keeps $7.32 as profit after all expenses.
Operating Margin
Core operations generate 9.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.06 in profit for every $100 of shareholder equity.
ROA
Kansai Nerolac Paints Limited generates $6.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kansai Nerolac Paints Limited generates limited operating cash flow of $2.02B, signaling weaker underlying cash strength.
Free Cash Flow
Kansai Nerolac Paints Limited generates weak or negative free cash flow of $987.31M, restricting financial flexibility.
FCF Per Share
Each share generates $1.22 in free cash annually.
FCF Yield
KANSAINER.BO converts 0.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How KANSAINER.BO Stacks Against Its Sector Peers
| Metric | KANSAINER.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.86 | 24.70 | Worse (Expensive) |
| ROE | 9.06% | 1017.00% | Weak |
| Net Margin | 7.32% | -111114.00% (disorted) | Weak |
| Debt/Equity | 0.05 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 3.48 | 6.11 | Strong Liquidity |
| ROA | 6.77% | -6758.00% (disorted) | Weak |
KANSAINER.BO outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kansai Nerolac Paints Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
59.67%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
11.24%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
38.10%
Industry Style: Cyclical, Commodity, Value
High Growth