HomeNewsBusinessStocksBuy Berger Paints; target of Rs 774: Geojit

Buy Berger Paints; target of Rs 774: Geojit

Geojit is bullish on Berger Paints has recommended buy rating on the stock with a target price of Rs 774 in its research report dated August 16, 2023.

August 18, 2023 / 14:32 IST
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Buy
Buy

Geojit's research report on Berger Paints

Berger Paints India (Berger) is the second-largest paints company in the domestic market, with 16 strategically located manufacturing units and a countrywide distribution network of 25,000+ dealers. The company’s consolidated revenue increased 9.8% YoY to Rs. 3,030cr, driven by robust volume growth and strong performance in the decorative business. EBITDA margin expanded 370 bps YoY (+330 bps QoQ) to 18.4%, supported by lower raw material prices. The company reported strong earnings performance in Q1FY24, with improved sales and margins. Berger’s earnings potential appears promising, with favourable demand prospects, new product launches, and sustained profitability.

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Outlook

We reiterate our BUY rating on the stock with a revised target price of Rs. 774 based on 53x FY25E adjusted EPS.