KANSAI NEROLAC PAINTS LTD Valuation

KANSAINER · Consumer Durables · Current price ₹201.28

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DocStoX fair value
₹135
low confidence
Current price
₹201
Upside
-32.8%
P/E ratio
27.6x
P/B ratio
2.6x
Verdict
Avoid
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Is KANSAI NEROLAC PAINTS LTD undervalued?

DocStoX estimates the fair value of KANSAI NEROLAC PAINTS LTD at ₹135 per share, versus the current market price of ₹201. That puts the stock about -32.8% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹80), Relative P/E (₹256), Graham floor (₹117). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹80 (bear) to ₹135 (base) to ₹256 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

KANSAI NEROLAC PAINTS LTD trades at a P/E of 27.6x and a P/B of 2.6x, with a dividend yield of 1.3%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on KANSAI NEROLAC PAINTS LTD

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.