KANSAI NEROLAC PAINTS
It is one of India’s leading paint companies and the largest player in the industrial segment. Due to rising raw material prices and fluctuation in currency, all companies across the paint industry faced operating margins pressures. But the company expects revival in volumes and revenue from Q2FY19 with expansion in industrial segment. In Q1FY19, it reported robust numbers led by double digit growth in the decorative segment. The company has launched new products in the decorative segment and is focusing on foraying into West and South Indian markets. Also, it is spending high on advertising and marketing for promoting its decorative segment. Recently, the GST rate on paints was reduced from 28 per cent to 18 per cent, which would benefit the company. Considering the positive prospects, we recommend it as a BUY.