Kansai Nerolac stock rating raised to accumulate by Elara Securities

Published 09/05/2025, 08:06
Kansai Nerolac stock rating raised to accumulate by Elara Securities

On Friday, Elara Securities India adjusted its stance on Kansai Nerolac Paints (NSE:KANE) Limited (KNPL:IN), upgrading the stock from a "Reduce" rating to "Accumulate" and increasing the price target to INR 285.00 from the previous INR 272.00.

Elara Securities made this decision noting that despite Kansai Nerolac’s sales growth being subdued, the stock’s recent correction of approximately 9% over the past six months presents a reasonable upside. This is further bolstered by the stock’s attractive valuation. The new price target is based on a 30x FY27 P/E multiple.

The analyst at Elara Securities commented on the upgrade, stating that while they recognize the growth in sales is not yet compelling, the current valuation of the stock provides an opportunity for accumulation. They expressed a cautious optimism, suggesting that while the stock now holds potential for investors, they are on the lookout for stronger positive catalysts before recommending Kansai Nerolac as a top selection in the paints sector.

The upgrade reflects a shift in Elara Securities’ outlook on Kansai Nerolac, indicating a belief in the potential for the stock’s performance to improve. However, the firm also indicated that they are waiting for more significant positive developments before fully endorsing the stock as a leading choice within its industry.

Investors may view this upgrade as a sign of changing market conditions or perceptions regarding Kansai Nerolac, potentially influencing their investment decisions. It is important to note that while the rating has been upgraded, Elara Securities maintains a cautious approach, looking forward to more robust catalysts in the future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.