Karvy Stock Broking's report on Berger Paints India"Berger Paints India Ltd. (BPIL) has recently commissioned water based paints manufacturing unit at Hindupur, Andhra Pradesh in FY15. The production from this plant is ramping up towards full scale utilization which elaborates BPIL’s focus on premium products to improve product mix for better margins. In India, BPIL has an extensive distribution network of 18000+ dealers growing with an annual pace of ~14% to increase customer reach. We expect net sales to grow with a CAGR of ~13% in FY15-FY17E period."Valuation and Outlook "At current price of Rs.208, the stock is trading at PE of 46.1x and 40.8x of its FY16E and FY17E earnings respectively. It is trading at P/BV of 9.9x and 8.6x for FY16E and FY17E respectively. We recommend a “HOLD” rating on BPIL with a target price of Rs.229, an upside potential of 10%", says Karvy Stock Broking 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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