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