Analyst Estimates: Here's What Brokers Think Of Kansai Nerolac Paints Limited (NSE:KANSAINER) After Its First-Quarter Report
It's been a good week for Kansai Nerolac Paints Limited (NSE:KANSAINER) shareholders, because the company has just released its latest first-quarter results, and the shares gained 5.2% to ₹210. Results were roughly in line with estimates, with revenues of ₹24b and statutory earnings per share of ₹7.28. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Kansai Nerolac Paints' 14 analysts is for revenues of ₹89.2b in 2027. This reflects a credible 7.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 21% to ₹8.95. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹89.4b and earnings per share (EPS) of ₹9.06 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Kansai Nerolac Paints
The analysts reconfirmed their price target of ₹249, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Kansai Nerolac Paints at ₹316 per share, while the most bearish prices it at ₹193. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kansai Nerolac Paints' past performance and to peers in the same industry. It's clear from the latest estimates that Kansai Nerolac Paints' rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 5.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Kansai Nerolac Paints is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹249, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Kansai Nerolac Paints. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kansai Nerolac Paints analysts - going out to 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - Kansai Nerolac Paints has 2 warning signs we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.