Kansai Nerolac Paints Q4FY19: Net Sales expected to grow at a CAGR of 10%; Overweight

Firstcall India Equity | May 4, 2019, 12:14 p.m.

OUTLOOK AND CONCLUSION

At the current market price of Rs. 435.00, the stock P/E ratio is at 45.51 x FY20E and 40.53. x FY21E respectively.

Earning per share (EPS) of the company for the earnings for FY20E and FY21E is seen at Rs. 9.56 and Rs. 10.73 respectively.

Net Sales and Operating Profit of the company are expected to grow at a CAGR of 10% and 5% over 2018 to 2021E respectively.

On the basis of EV/EBITDA, the stock trades at 26.22 x for FY20E and 23.43 x for FY21E.

Price to Book Value of the stock is expected to be at 5.95 x and 5.27 x for FY20E and FY21E respectively.

Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.



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