Goodlass Nerolac Aiming for the top spot - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Goodlass Nerolac Aiming for the top spot

May 19, 2000

Goodlass Nerolac paints has posted a 15% rise in turnover even as its bottom line has grown by 18%. The company, in a meet with analysts, has reiterated its desire to focus on the decorative paints segment even as it consolidates its position in the industrial paints segment.

Bottom-Up
FY99 FY00 Change
Gross Sales 5,457 6,292 15.0%
PBT 340 423 24.0%
PAT 255 300 18.0%
EPS 16.7 19.7

Goodlass Nerolac is the market leader in the industrial segment with a 40% market share. Recently, the Tata group sold its 29% stake in the company to Kansai Paints Limited, Japan, at Rs 250 per share. The company meets nearly 70% of the demand for industrial paints. Its client list includes Maruthi, Honda, Toyota, Mahindra Ford, Whirlpool, Tata Chemicals, Bajaj, Hero Honda, Godrej GE, TVS Suzuki and Indian Hotels Limited.

The company is also planning to consolidate its position in the decorative paint segment with the installation of computerized colour dispensers at various locations in the country, to bring the customers close to the company. The company currently has 10,700 dealers and is widening the network to tap the rural market as well.

The sales for the company are up 15% to Rs 6,292 m for FY00. The company is currently running at 53% (44% in FY99) capacity. It has posted an 18% growth in bottom line for FY00. The growth in PAT has been limited by the increase in tax outflow.

Goodlass Nerolac has envisaged the following as their focus areas 1. A market share of 25% and revenues of Rs 12,000 crores by FY03. 2. To focus on the decorative segment, where the company intends to consolidate its position, by installing computerized colour dispensers. 3. To concentrate on new technology and applications segments like plastics, coils and can coating, 4. To service the general industrial and auto ancillary segment needs, which is not serviced to the potential and 5. To improve the operational efficiency of the company through cost reduction and by enhancing productivity 6. To spend Rs 30 to Rs 40 million in research and development

Through a proper customer relationship management and ERP implementation the company intends to fix the delivery problem that it is facing currently.

With the passenger car sales showing a good demand growth, the company should post better growth in topline. Further, the cost control measures along with the efficient distribution strategies initiated should help in improving profit margins.

Equitymaster requests your view! Post a comment on "Goodlass Nerolac Aiming for the top spot". Click here!

  

More Views on News

KANSAI NEROLAC Announces Quarterly Results (3QFY21); Net Profit Up 64.6% (Quarterly Result Update)

Feb 2, 2021 | Updated on Feb 2, 2021

For the quarter ended December 2020, KANSAI NEROLAC has posted a net profit of Rs 2 bn (up 64.6% YoY). Sales on the other hand came in at Rs 15 bn (up 18.0% YoY). Read on for a complete analysis of KANSAI NEROLAC's quarterly results.

KANSAI NEROLAC 2019-20 Annual Report Analysis (Annual Result Update)

Dec 29, 2020 | Updated on Dec 29, 2020

Here's an analysis of the annual report of KANSAI NEROLAC for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of KANSAI NEROLAC. Also includes updates on the valuation of KANSAI NEROLAC.

KANSAI NEROLAC Announces Quarterly Results (2QFY21); Net Profit Down 18.0% (Quarterly Result Update)

Nov 6, 2020 | Updated on Nov 6, 2020

For the quarter ended September 2020, KANSAI NEROLAC has posted a net profit of Rs 2 bn (down 18.0% YoY). Sales on the other hand came in at Rs 13 bn (up 3.6% YoY). Read on for a complete analysis of KANSAI NEROLAC's quarterly results.

KANSAI NEROLAC 2018-19 Annual Report Analysis (Annual Result Update)

May 30, 2019 | Updated on May 30, 2019

Here's an analysis of the annual report of KANSAI NEROLAC for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of KANSAI NEROLAC. Also includes updates on the valuation of KANSAI NEROLAC.

More Views on News

Most Popular

A Critical Update on the Market (Fast Profits Daily)

Mar 30, 2021

In this video, I'll tell you why I am recommending caution in the market at this time.

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

What You Need to Find Hundred Baggers (Profit Hunter)

Mar 30, 2021

100 baggers of the last decade share this common trait. Here's how to use it to nail future multibaggers.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

KANSAI NEROLAC SHARE PRICE


Apr 9, 2021 (Close)

TRACK KANSAI NEROLAC

  • Track your investment in KANSAI NEROLAC with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON KANSAI NEROLAC

KANSAI NEROLAC 8-QTR ANALYSIS

COMPARE KANSAI NEROLAC WITH

MARKET STATS