Accumulate Berger Paints; target of Rs 245: Emkay

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26 Aug, 2025 12:21

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Emkay's research report on Berger Paints IndiaStrong volume growth in Q1FY16 is led by distribution and brand investments. We believe gradual uptick in demand coupled with focus on dealer expansion, innovative product pipeline and brand building will drive 18% revenue CAGR in FY15-17EMargin expansion has been strong driven by low input cost and improving volume trajectory. We believe along with benign cost environment, product mix improvement and operating leverage will drive EBITDA margins to 15.2% by FY17EHealthy volume growth in a weak demand environment and strong margins is reassuring. Our core arguments are (1) gains from scale & size (2) shift in product portfolio and (3) retaining market shares."Against muted demand sentiments, Berger has reported healthy volume growth and strong margin expansion. Company expects decorative paints demand to pick up gradually; further distribution and branding efforts will drive higher volume trajectory. Drivers to domestic business are strong and industrial has also shown healthy signs of pick-up. Our core arguments are (1) gains from scale & size (2) shift in product portfolio and (3) retaining market shares. We retain Accumulate with revised price target of Rs 245/share (32x FY17E)", says Emkay Global Financial Services research report.For all recommendations, 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.

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