Hold Berger Paints India: target of Rs 740: ICICI Direct

ICICI Direct's research report on Berger Paints India

Berger Paints is the second largest paint player in India. Berger derives ~80-85% of its topline from decorative paints while the rest comes from the industrial segment. The company has ~13 manufacturing units in India with ~50,000 dealer network across India • Strong b/s with RoCE, RoE of 26%, 22%, respectively, (five-year average).

Outlook

We maintain our HOLD rating on the stock. We value Berger at Rs 740 i.e. 60x P/E on FY24E EPS.

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