Buy Berger Paints; target of Rs 211: Firstcall Research

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26 Aug, 2025 12:21

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Firstcall Research is bullish on Berger Paints and has recommended buy rating on the stock with a target of Rs 211 in its February 4, 2013 research report.
 
"Berger Paints India Limited is an Indian paint company which operates chiefly in India headquartered in Kolkata, India, since its inception in the year 1923. India's second largest decorative paint player, with Head Office in Kolkata the company manufactures and markets a range of decorative & industrial paint products under various product brands and has it operations spread throughout the length & breath of the country; with seven manufacturing facilities in India and more than 85 depots, several regional & area offices, besides four facilities overseas. It has a workforce of over 2500 employees and a countrywide distribution network of 15000 plus dealers. The Company has planned to set up manufacturing facility for Auto GI - 18,000 KL per annum, Protective Coatings - 12,000 KL per annum and Solvent Base Decorative Paints - 24,000 KL per annum at Jejuri near Pune. The Plant layout has been finalized. The Plant is likely to be commissioned in 2013."
 
"Berger Paints India Ltd is a 2nd largest decorative paint player, reported its financial results for the quarter ended 31st Dec, 2012. The company's net profit steers to Rs.654.00 million against Rs.449.20 million in the corresponding quarter ending of previous year, an increase of 45.59%. Revenue for the quarter rose 17.28% to Rs.8222.00 million from Rs.7010.40 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.1.89 a share during the quarter, registering 45.45% increase over previous year period. Profit before interest, depreciation and tax is Rs.1087.00 millions as against Rs.773.60 millions in the corresponding period of the previous year."
 
"At the current market price of Rs 187, the stock P/E ratio is at 28.70 x FY13E and 24.34 x FY14E respectively. Earnings per share (EPS) of the company for the earnings for FY13E and FY14E are seen at Rs.6.52 and Rs.7.68 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 22% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 16.88 x for FY13E and 14.41 x for FY14E. Price to Book Value of the stock is expected to be at 6.05 x and 4.85 x respectively for FY13E and FY14E. We recommend 'BUY' in this particular scrip with a target price of Rs 211 for medium to long term investment," says Firstcall Research report.

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