Buy Kansai Nerolac Paints, target price Rs 675: Yes Securities

Yes Securities has buy call on with a target price of Rs 675. The current market price of Kansai Nerolac Paints Ltd. is Rs 613.8. Time period given by analyst is Intra Day when Kansai Nerolac Paints Ltd. price can reach defined target.

Kansai Nerolac Paints Ltd., incorporated in the year 1920, is a Large Cap company (having a market cap of Rs 33062.72 Crore) operating in Building Materials sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1470.50 Crore, down -8.49 % from last quarter Total Income of Rs 1606.86 Crore and up 35.67 % from last year same quarter Total Income of Rs 1083.91 Crore. Company reported net profit after tax of Rs 123.62 Crore in latest quarter.

Investment Rationale
The stock has broken out from a sideways consolidation pattern suggesting bullishness. Further, volumes have been good in the breakout candles, confirming the uptrend. Technical indicators are also in bull territory confirming strength in the stock.

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of Sept 30, 2020, while FIIs held 4.2 per cent, DIIs 12.1 per cent and public and others 8.8 per cent.