Nomura has retained its ‘Buy’ rating on Kansai Nerolac Paints with a target price of ₹325, even as the company’s Q1FY26 performance came in weaker than expected. The stock was trading at ₹241.80 as of the latest close.
Nomura on Kansai Nerolac share: Buy, TP ₹325
The brokerage highlighted that margins contracted more than expected during the quarter, impacted by negative operating leverage. However, it expects the company to gain market share in the industrial segment, and noted that dealers who were lost to competition are now returning, which could support volume recovery in coming quarters.
Nomura also noted Kansai’s strategic efforts to deepen its presence in strong decorative catchments, while expanding the total addressable market (TAM) in the industrial paints segment.
Despite the Q1 miss, Nomura remains optimistic about the medium-term growth trajectory, underpinned by improving volumes and share gains.
Disclaimer: The views and investment recommendations expressed by brokerages are their own and do not represent the views of this publication. Investors are advised to consult certified financial advisors before making any investment decisions.
