Shares of paint maker Kansai Nerolac Paints ended over 3 per cent lower today after Q2 earnings came below estimates. Kansai Nerolac Paints shares closed 3.49 per cent lower at Rs 349 against the previous close of Rs 483.90 on BSE. Earlier, Kansai Nerolac stock hit an intraday low of Rs 465.10, down 3.89 per cent. The stock stands higher than the 100 day and 200 day moving averages but lower than the 5-day, 20-day and 50-day moving averages. It has lost 18% in a year and fallen 21 percent in 2022. In a month, the stock is down 4.88 per cent.
Market cap of the firm fell to Rs 25,167 crore on BSE.
A total of 0.35 lakh shares of the firm changed hands amounting to a turnover of Rs 1.67 crore on BSE. The firm reported a 23.43 year-on-year (YoY) rise in consolidated net profit at Rs 113.57 crore compared with Rs 92.01 crore in the corresponding quarter last year.
Sales grew 19.22 per cent to Rs 1,930.36 crore in Q2 against Rs 1619 crore in the September quarter of the previous fiscal. On a sequential basis, net profit fell 27.35 per cent from Rs 156.32 crore in the June quarter. Sales too slipped 5.87 per cent from Rs 2,051 crore.
Amnish Aggarwal, Head of Research, Prabhudas Lilladher said Q2 earnings were a miss on estimates across all fronts. Revenues rose 19.3% YoY to Rs 1810 crore less than Prabhudas Lilladher’s estimates of Rs 2.020 crore.
Gross margins fell 32bps/132bps YoY/QoQ to 28.6% against estimates of 31.3% decline by the brokerage. Adjusted profit after tax rose 19% YoY to Rs 120 crore against estimates of Rs 190 crore.
“Demand trends are expected to remain strong in 3Q. We have an Accumulate rating on the stock with a target price of Rs 558,” Prabhudas Lilladher said.
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