The shares of the leading paint manufacturer jumped 9 percent to a 52-week high price of Rs 355 per share after the company plans to sell a land parcel in Mumbai for Rs 726 crores.
At 2:40 p.m., Kansai Nerolac Paints Ltd shares were trading at Rs 339.65 per share, up Rs 14.95 or 4.60 percent from the previous close price. The company has a market capitalization of Rs 27,363 crore.
According to the company’s exchange filing, the Board of Directors has approved a proposal to enter into an agreement for Sale with Aethon Developers Private Limited, a subsidiary of Runwal Developers Private Limited (“Purchaser”), for the sale of the Company’s land parcel at Lower Parel, for a consideration of Rs. 726 Crores.
In August 2022, the company board passed a resolution to sell the monetization of idle land of the company properties that are not being put to profitable use.
Furthermore, Kansai Nerolac Paints sold its Thane property to the Hiranandani Group for a total price of 671 crore in July 2023.
Kansai Nerolac Paints shares have gained 11 percent in the last six months and 17 percent in a year.
The company’s revenue has increased nearly 1.5 percent yearly, from Rs 1,931 crore in Q2FY23 to Rs 1,957 crore in Q2FY24. During the same timeframe, Net profit has increased by 57 percent from Rs 111 crore to Rs 175 crore.
Kansai Nerolac Paints is primarily engaged in the manufacturing of Paints and is a market leader in Industrial coatings. It is the largest industrial paint company and the third largest decorative paint company.
The company’s products include decorative paints, high-performance coatings, automotive coatings, general industrial coatings, and specialty coatings. The company has a manufacturing capacity of 606 million liters in FY 2022-23.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
