Rebound in auto industry set to brighten prospects for Kansai Nerolac

While decorative paints business remains strong, overall economic growth to aid industrial segment

Kansai Nerolac Paints is expected to be the biggest beneficiary in the paints sector of the rebound in the passenger vehicle (PV) segment. The company, which gets 30 per cent of its revenues from the auto segment, will gain from the 20-per cent year-on-year (YoY) uptick in PV sales in October, followed by initial estimates of robust growth in the recently concluded festival period. 

Brokerages estimate that PV sales during the festival period were up 10-15 per cent, with tractors also witnessing a double-digit growth. Though two-wheeler registrations have been lower, they have improved during the festival period. After the Q2