Kansai Nerolac shares surge 9% on Rs 726 crore Lower Parel land parcel deal
Kansai Nerolac said it monetised the idle land parcels of the company not being put for productive use. For this, Kansai Nerolac entered into an Agreement for Sale with the purchaser for a consideration of Rs 726 crore.
- Dec 27, 2023,
- Updated Dec 27, 2023 9:47 AM IST
Shares of Kansai Nerolac Paints Ltd surged 9 per cent in Wednesday's trade after the company's board approved a proposal for entering into an agreement for sale with a subsidiary of Runwal Developers, Aethon Developers, for the sale of the paints maker's land parcel at Lower Parel together with building.
In a filing to BSE, Kansai Nerolac said it monetised the idle land parcels of the company not being put for productive use. For this, Kansai Nerolac entered into an Agreement for Sale with the purchaser for a consideration of Rs 726 crore.
The sale is subject to completion of procedures and approvals as may be necessary in this regard, Kansai Nerolac said.
Following the development, the stock climbed 9.21 per cent to hit a high of Rs 355 on BSE.
"The board of directors of the company has approved a proposal for entering into an Agreement for Sale with Aethon Developers Private Limited, subsidiary of Runwal Developers Private Limited, for the sale of the company’s land parcel at Lower Parel together with building thereon, for a consideration of Rs. 726 Crores. Accordingly, the company has entered into an Agreement for Sale with the Purchaser. The sale is subject to completion of procedures and approvals as may be necessary in this regard," it told BSE.
Prabhudas Lilladher said the company has been taking all the right steps but valuations at 27.2 times FY26 earnings are factoring in expected increase in competition and consequent threat to market share and profitability post Grasim’s entry.
"We believe improving sales traction and profitability in Industrial paints (45 per cent of sales), could be a saving grace, given parent’s strength in Industrial Paints. We estimate 27.9 per cent PAT CAGR over FY23-26 and 13.3 per cent CAGR over FY24-26. Retain accumulate with target price of Rs 370 based on 32 times September 2025 EPS (Rs351 earlier based on 32 timesFY25 EPS)," the brokerage said this month.
Shares of Kansai Nerolac Paints Ltd surged 9 per cent in Wednesday's trade after the company's board approved a proposal for entering into an agreement for sale with a subsidiary of Runwal Developers, Aethon Developers, for the sale of the paints maker's land parcel at Lower Parel together with building.
In a filing to BSE, Kansai Nerolac said it monetised the idle land parcels of the company not being put for productive use. For this, Kansai Nerolac entered into an Agreement for Sale with the purchaser for a consideration of Rs 726 crore.
The sale is subject to completion of procedures and approvals as may be necessary in this regard, Kansai Nerolac said.
Following the development, the stock climbed 9.21 per cent to hit a high of Rs 355 on BSE.
"The board of directors of the company has approved a proposal for entering into an Agreement for Sale with Aethon Developers Private Limited, subsidiary of Runwal Developers Private Limited, for the sale of the company’s land parcel at Lower Parel together with building thereon, for a consideration of Rs. 726 Crores. Accordingly, the company has entered into an Agreement for Sale with the Purchaser. The sale is subject to completion of procedures and approvals as may be necessary in this regard," it told BSE.
Prabhudas Lilladher said the company has been taking all the right steps but valuations at 27.2 times FY26 earnings are factoring in expected increase in competition and consequent threat to market share and profitability post Grasim’s entry.
"We believe improving sales traction and profitability in Industrial paints (45 per cent of sales), could be a saving grace, given parent’s strength in Industrial Paints. We estimate 27.9 per cent PAT CAGR over FY23-26 and 13.3 per cent CAGR over FY24-26. Retain accumulate with target price of Rs 370 based on 32 times September 2025 EPS (Rs351 earlier based on 32 timesFY25 EPS)," the brokerage said this month.