View 17 reports from 6 analysts offering long term price targets
for Berger Paints (India) Ltd..
Berger Paints (India) Ltd. has an average target of 699.00. The consensus estimate
represents an upside of 2.77%
from the last price of 680.15.
- This broker has downgraded this stock from it's previous report. (eg. - Buy->Hold)
- Broker has maintained previous recommendation but reduced share price target.
- This broker has upgraded this stock from it's previous report.(eg. - Sell->Hold)
- Broker has maintained previous recommendation but increased share price target.
CESC: CESC's consolidated PAT in Q1FY23 increased by 6.1% YoY to INR3.0bn, led by higher earnings at Dhariwal (from a new PPA with Railway Energy Management CompanyREMCL), Noida Power (high power demand) and turnaround in the Rajasthan distribution franchisee (DF) segment (a profit of INR60mn vs a loss of INR110mn YoY). These were partially offset by increased losses in the Malegaon DF business (a loss of INR190mn vs profit of INR20mn YoY) and lower profitability in the Haldia business (INR660mn vs INR900 mn). Standalone PAT remained flat YoY. WBERC awarded multi-year tariff for FY21-23 and annual performance review for FY15-18, but the decision on regulatory assets stands deferred. We have not included the Chandigarh discom in our valuation as CESC is yet to receive a letter of intent (LoI). We maintain our earnings estimates for FY23/24 and retain BUY, with a TP of INR113. Borosil Renewables: Borosil Renewable's (BRL) Q1FY23 PAT declined 24% YoY to INR301mn as the cost of raw materials, fuel and power expenses continued to remain elevated in the quarter. Realisation was slightly better QoQ at INR141/sqmm (flat YoY), but the company was unable to pass on the escalated input cost to its customers due to intense competition from Chinese players; hence, this impacted its EBITDA and margin by 22% YoY and 1,715 bps respectively. The quantitative sales volume grew 23% YoY and BRL reported revenue growth of 25% YoY to INR1,700mn in Q1. Though it would be tough for BRL to sustain its profitability amidst steep rise in input costs, we do...
Berger’s revenue growth of 53.4% YoY was largely in line with its peers Asian Paints (54.1%) and Kansai (46.2%). While it has maintained market shares on three-year CAGR basis, we believe it has lost some market share in North India in past 2-3 quarters.
V-MART Retail: V-MART reported 30% growth YoY. Organic business (ex-Unlimited acquisition) recovered fully in FY22 (INR3.85bn in Q4) from the pandemic blues. Footfall density is yet to catch up, while transaction sizes remain elevated vs. pre-pandemic levels. Unlimited format's inferior unit economics certainly remains a drag on portfolio unit economics. Profitability beat (11% vs HSIE's 6%) was primarily a function of (1) better topline recovery and (2) higher-than-expected GM (higher full price sales). We continue to realign profitability (-20/-40%) for FY23/FY24, given the Unlimited drag, and maintain our ADD rating, with the DCF-based TP of INR3,500/sh (unchanged, implying 25x EV/EVITDA). TCNS Clothing: TCNS' journey to pre-pandemic sales remained underwhelming, partly due to category-specific idiosyncrasies. At INR2.34bn (broadly in line), revenue was at ~81% of pre-COVID level. Recovery continued to lag that of peers (Trent/Madura clocked 21/8% three-year CAGRs). Profitability missed expectation (EBITM at -3.8% vs HSIE's 0.4%) as cost of retailing remained inefficient. We largely maintain our FY23/24 EBITDA estimates and leave our DCF TP of INR575/sh unchanged (implying 13x FY24 EV/EBITDAR). We upgrade the stock to REDUCE, as valuation is more palatable after the recent correction. Berger Paints: BRGR's topline delivery (8% YoY; three-year CAGR: 14% INR21.9bn in Q4) missed expectations (HSIE: INR23.6). FY19-22 CAGR (standalone) has lagged that of APNT (12% vs APNT's 15%). However, BRGR has managed to better balance growth and margin as we reckon the focus on lower ASP products has been less intense vs APNT over FY19-22. Standalone volume growth remained flat/grew 19% YoY in Q4/FY22. FY22 price hikes are...
Background: Berger Paints is the second largest decorative paint company in India. The Company operates seven manufacturing facilities spread across India, and four overseas manufacturing facilities. The company has second largest distribution network of ~11,500 active dealers and ~12,000 tinting machines. Berger has a strong presence in East and North India, which accounts for 60% of its distribution network while South & West India accounts for 40% of distribution network. Company derives ~80% of revenue from decorative paints and the rest from industrial paints of which Automotives accounts for 8%, powder coating accounts for 2%...
We expect company to perform better in upcoming quarter on the back on continued growth in topline. However, margins remain under pressure on inflationary concerns. We maintain our HOLD rating on the...
V-MART Retail: V-MART reported 47% growth YoY. Organic business (ex-Unlimited acquisition) recovered fully from the pandemic blues (INR5.74bn). 2-yr CAGR for 9MFY22 stands at -10.6%. Footfall density still needs to catch up, while transaction sizes remain elevated vs. pre-pandemic levels. The acquisition of Unlimited weighed down profitability and is likely to be a drag in the near term. We account for this and tone our FY23/24 EBITDA estimates down by 7/3% resp. Consequently, our DCF-based TP stands revised at INR 3,700/sh (earlier INR3,850), implying 26x FY24 EV/EBITDA. The recent stock price correction allows us to upgrade our rating on V-MART to ADD (earlier REDUCE), as risk-reward becomes more palatable. Dilip Buildcon: Dilip Buildcon (DBL) reported a weak quarter, missing our estimate at all levels. Moderate project progress, extended southern monsoon, commodity price spike (metals, fuel, and bitumen), and absence of early completion bonus suppressed EBITDA margin to a mere 0.3%. Due to high commodity price volatility, price escalation coverage in EPC projects reduced to 50-60%. DBL has 13 HAM assets slated for divestment, with expected total proceeds of INR 27.8bn. All future projects would be monetized via a listed Shrem private InVIT for better equity valuation. We maintain BUY; however, given the margin pressure, execution delays, and high operating leverage sensitivity, we reduce our FY22/23/24 EPS and TP to INR 490 (12x Dec-23E EPS, 1x P/BV HAM equity investment). TCNS Clothing: TCNS Clothing recovered its pre-pandemic sales in Q3 (INR3.29bn; HSIE: INR3.19bn) as offline sales hits near full recovery. Recovery lags peers though (Trent/Madura clocked 24/11%...
Higher demand and volume growth helped Berger Paints somewhat mitigate impact of input costs on its operational performance during the quarter. Company has also recently hiked prices to pass on the increase in cost of materials to consumers. With improved outlook, we upgrade our rating on the stock to HOLD with a rolled forward target price of Rs. 835 based on 60x FY24E adj. EPS. Recovery in demand and volumes drive topline growth Berger Paints reported 23.7% QoQ increase in Q2FY22 revenue to Rs. 2,225cr (+27.7%...
Price hikes, better product mix and improved formulations helped restrict the gross margin fall at 450 bps YoY (vs. 966 bps YoY fall in gross margin of Asian Paints). This coupled with savings in other costs arrested EBITDA margin fall at 333 bps YoY to 15.6%...
Background: Berger Paints is the second largest decorative paint company in India. The Company operates seven manufacturing facilities spread across India, and four overseas manufacturing facilities. The company has second largest distribution network of ~11,500 active dealers and ~12,000 tinting machines. Berger has a strong presence in East and North India, which accounts for 60% of its distribution network while South & West India accounts for 40% of distribution network. Company derives ~80% of revenue from decorative paints and the rest from industrial paints of which Automotives accounts for 8%, powder coating accounts for 2%...
Business continues to be impacted due to the COVID pandemic with persisting partial lockdowns and granular demand curve recovery. Moreover, cost control still remains a challenge, as price hikes if any might negatively impact the demand. While uncertainties linger in the near-term, we believe, the stock is currently overpriced compared to its peers. Hence, we maintain our REDUCE rating on the stock with a revised target price of Rs. 698 based on 61x FY23E adj. EPS. Pressing topline upon subdued sequential growth...
PNC Infratech: PNC Infratech (PNC) reported a subdued quarter with revenue/EBITDA/APAT of INR 12.5/1.7/0.9bn missing our estimates by 14/11/17%. The order inflow was also tepid as the company did not win any awards in the quarter. However, management is confident of recovery and has maintained its guidance of 20% topline growth, ~14% EBITDA margin, and INR 80bn order inflow for FY22. Given the potential strong ordering by the NHAI, PNC will focus on the road sector. We maintain BUY, given a strong order book (OB) and comfortable balance sheet. A slowdown in NHAI ordering and delay in the monetisation of HAM projects are key risks to our numbers. We have maintained our FY22/23 estimates as we believe commencement of execution in the UP water project and two road EPC projects will lead execution recovery in H2FY22. We roll forward the target price to INR 356/sh (INR 342/sh earlier). Diversification, away from the roads sector, could lead to further rerating. Ashoka Buildcon: Ashoka Buildcon (ASBL) reported Q1FY22 standalone revenue/EBITDA/PAT at INR 10/1.2/1bn, 4/(7)/3% beat/(miss) on the estimates. Execution and toll collections have improved gradually since June-21. ASBL has received an order inflow of INR 30bn in FY22 until now and is further targeting orders worth INR 40bn in FY22. Including the recently won orders, the order book (OB) stands at INR 105bn. The company has maintained its guidance of 25% topline growth and 12-12.5% EBITDA margin for FY22. We maintain BUY, given low leverage (net D/E of ~0.15x) and comfortable liquidity position. Potential monetisation of HAM/BOT assets...
Berger Paints (BRGR) reported better than expected result driven by continued strong growth momentum in decorative coatings and robust performance of subsidiaries. Positively, revenue growth of BRGR during 4QFY21 stayed ahead of competition. Management guides that they have significantly improved on distribution expansion during FY21 as compared to normal rate of 10-12%. Also, BRGR fared well on managing input cost inflation (gross margin remained flat) compared to other players in paint industry (who reported gross margin contraction). BRGR has taken c.2.5% price hike in May'21 to address rise in raw material cost and is likely to undertake more price hikes...
Subsidiaries revenue (calculated) in Q4FY21 increased ~27% despite a higher base of 51% growth. The company's subsidiaries in BJN Nepal and Bolix SA (Poland) reported a strong sales recovery in Q4FY21 post ease in lockdown restrictions and improved demand conditions in the respective regions. On the domestic fronts, STP Ltd (STPL), which is primarily into waterproofing and protective coatings has also recorded a strong...
Considering the present economic activity and demand scenario, we expect the business could face impact from local lockdowns in the coming quarter. Company's ability to manage cost inflation through price hikes, without affecting demand, needs to be closely monitored. The stock is currently trading at expensive valuation. Considering nearterm uncertainties, we maintain our REDUCE rating on the stock with a revised target price of Rs. 696 based on 60x FY23E adj. EPS. Slowdown in demand recovery affects sequential topline growth Berger Paints' Q4FY21 consolidated revenue declined 4.3% QoQ on slow pace of...
Background: Berger Paints is the second largest decorative paint company in India. The Company operates seven manufacturing facilities spread across India, and four overseas manufacturing facilities. The company has second largest distribution network of ~11,500 active dealers and ~12,000 tinting machines. Berger has a strong presence in East and North India, which accounts for 60% of its distribution network while South & West India accounts for 40% of distribution network. Company derives ~80% of revenue from decorative paints and the rest from industrial paints of which Automotives accounts for 8%, powder coating accounts for 2%...
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