Macquarie has maintained its neutral rating on Kansai Nerolac, with a target price of ₹330, indicating a 16% upside from the current market price of ₹285.55. Kansai Nerolac’s Q2 results fell short across sales and gross margins, with EBITDA significantly below both Macquarie’s and street estimates.
The brokerage expressed positive sentiment regarding strong demand in the automotive and performance coatings segments. However, it raised concerns over weak decorative demand and a notable sequential decline in gross margins. Macquarie remains cautious on the stock, highlighting these mixed factors in its outlook.
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