Buy Berger Paints India; target of Rs 860: ICICI Direct

ICICI Direct's research report on Berger Paints India

Berger Paints is the second largest paint player in India. Berger derives ~82% of its topline from the decorative paints while rest comes from the industrial segment. Company has ~13 manufacturing units in India with ~30,000 dealer network across the country Strong b/s with RoCE, RoE of 26%, 22% respectively (five-year average)

Outlook

We maintain our HOLD rating on the stock We roll over our valuation on FY24 and value Berger at Rs 860 i.e. 58x P/E on FY24E EPS