ICICI Direct's research report on Berger Paints India
Berger’s Q3FY21 performance was much ahead of our expectations on all fronts. Overall volume growth at ~28% was largely led by decorative segment wherein rural and semi urban regions have witnessed a continuous trend of strong demand supported by the festive season. On the other hand, a strong recovery in automotive sales helped in a robust revival in the performance of industrial paints (~15% of topline). The management has reiterated strong growth momentum will continue in Q4 led by uptick in urban demand and a favourable base. We believe volume growth for Berger would be in line with market leader Asian Paints at 13% in FY20-23E supported by market share gains and reduction in repainting cycles. On the margin front, we believe EBITDA margin will normalise, going forward, with a recovery in input prices and restoration of overheads.
Outlook
We maintain our HOLD rating on the stock with a revised target price of Rs 810/share (earlier TP Rs 675).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
