Kansai Nerolac Paints Limited 120-180 Expected level 210 Support 100

#COMPANY #OUTLOOK • The company aspires to outpace overall market growth and targets revenue CAGR of ~10% by FY30, with an EBITDA margin of around 18%. Over the next three years (FY25–FY28), it aims to achieve: Revenue CAGR of ~9%, with EBITDA margin in the range of 14%–15%. • They aim to establish India as the leading entity within Kansai Paints Limited (currently it contribute 24.3%) under the new leadership. • It shall maintain the market leadership in the Automotive segment and attain the No.1 position in Industrial Coatings. • Key strategies in the retail segment includes leveraging product superiority through Paint+ and advanced Japanese technology, implementation of influencer engagement and painter loyalty programs and drive distribution expansion to broaden market presence. In the project segment, the focus is on expanding geographical presence, building a strong pipeline of project sites, and offering a specialized product range tailored to project-specific requirements. • Key growth drivers in the construction chemicals include - Offering a comprehensive product portfolio, Strengthening distribution networks & Engaging through architect and interior designer programs. In the wood finish (Premium) segment, it shall maintain a complete product portfolio, focus on distribution expansion and promote via architect & interior designer engagement programs.

#SECTOR #POTENTIAL • The domestic paint industry consisting of the decorative and industrial paint segment is estimated at over ~₹80,000 cr. The decorative paint segment constitutes 75% and industrial paint segment makes up the balance 25% of the domestic paint market. • The Indian coatings market is projected to achieve a revenue CAGR of 7.4% over the period 2025–2027, significantly outpacing the global coatings market, which is expected to grow at a CAGR of 3.9% during the same period. • 75% of the Indian paint industry is dominated by the organized players and rest by the unorganized players. Increased customer awareness has led to a shift in preference from unorganized to organized players, reducing dealer influence and making it imperative to establish a strong brand image. • The Indian paint industry, particularly the decorative segment, continued to face headwinds in FY25 due to heightened competition and subdued demand. The organized decorative paint sector recorded negative growth, impacted by intensified competition from both established and new players. Additionally, the year was marked by a slowdown in new construction activity, reduced renovation intensity, and weaker-than-expected B2B demand. Despite these headwinds, recent trends indicate early signs of recovery. • The Indian paint industry has been witnessing a gradual shift in the preferences of customers from the traditional whitewash to high-quality paints like emulsions and enamel paints, which is providing the basic stability for growth of Indian paint industry. • Crude oil forming an essential component of raw material for paint companies, any volatility in its price will need to be critically monitored to cushion the impact on profitability. Recently, the prices of crude oil saw a substantial decline. • The government has applied anti-dumping duty on Rutile (titanium dioxide) originating in or exported from China. • As per RBI (Reserve Bank of India) bulletin, rural demand is expected to continue the growth momentum and construction activity is poised to increase.