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Kansai Nerolac Paints scales record high on entering JV with Maharaja group

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Capital Market
Last Updated : Jan 20 2015 | 11:33 AM IST

Kansai Nerolac Paints rose 1.2% to Rs 2,292.45 at 09:41 IST on BSE after the company entered into a joint venture agreement with Capital Holdings Maharaja to enter paints market in Sri Lanka.

The announcement was made after market hours yesterday, 19 January 2015.

Meanwhile, the BSE Sensex was up 127.96 points, or 0.45%, to 28,389.97

On BSE, so far 1,007 shares were traded in the counter, compared with an average volume of 2,071 shares in the past one quarter.

The stock hit a record high of Rs 2,295 in intraday trade today, 20 January 2015. The stock hit a low of Rs 2,264.60 so far during the day. The stock hit a 52-week low of Rs 975.25 on 18 February 2014.

The large-cap company has an equity capital of Rs 53.89 crore. Face value per share is Rs 10.

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Kansai Nerolac Paints said that the company has shown significant interest in its neighboring country owing to Sri Lanka's progressive economy. Maharaja group is a diversified group in Sri Lanka having presence in businesses like media, hardware, FMCG products, etc. Maharaja group was exploring to enter paints. Kansai Nerolac Paints seeks to take advantage of Maharaja group's strong presence in hardware outlets, the company said. The company now intends to start a joint venture by incorporating a company.

Kansai Nerolac Paints said that the total project cost is estimated to be 65 crore SLR (Sri Lanka Rupees). The equity contribution of Kansai Nerolac Paints in this proposed joint venture would be 60% amounting to around 39 crore SLR (Rs 18.4 crore), Kansai Nerolac Paints said.

On 9 January 2015, Kansai Nerolac Paints said that the company has scheduled a board meeting on 30 January 2015 to consider a stock split proposal.

Kansai Nerolac Paints' net profit surged 40.6% to Rs 72.66 crore on 17.2% growth in net sales to Rs 915.18 crore in Q2 September 2014 over Q2 September 2013.

Kansai Nerolac Paints is the second largest paint company in India and is the leader in industrial segment. The company manufactures a diversified range of products ranging from architectural coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings for most of the industries.

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First Published: Jan 20 2015 | 9:55 AM IST

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