Berger Paints (India) Ltd. share price target

Recently, the stock price of Berger Paints India Ltd. (Berger Paints) corrected by ~18% from 52-week high of Rs.286 despite reporting good set of numbers in the recent quarters. Berger Paints is the 2nd largest company in decorative paint segment with market share of 19%, just after Asian paints. Over the last couple of years, it has gained market share by implementing various strategies. It has registered a phenomenal CAGR of 12% in its topline as well as CAGR of 21% in bottomline during FY11-17. Crude oil and its derivatives, which...

The revenues (conso) grew by 14% YoY to ` 13.4bn, came in-line with our estimate. Standalone revenues were up 13.6% at ` 11.9bn (implied volume growth of ~10%) and subsidiary business witnessed 17.2% YoY rise in revenues. Primary analysis implies better volume growth compared to APL (~7-8%) and Nerolac (double-digit). EBITDA grew by 21.3% YoY at ` 2.2bn, while EBITDA margins remained expanded by 100bps YoY to 16.6% benefiting from 50/30/30bps dip in other expense/employee cost/RM. APAT rose 19.5%...

Sector: Paints /Mid-Cap | Earnings Update 3QFY18 Background: Berger Paints is the second largest decorative paint company. Company has seven manufacturing facilities spread across India, besides 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 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% and other industries accounts for 10%. It has strong brands like Berger Silk, Berger Rangoli, Berger Illusions, Berger Weather Coat and Jadoo Enamel....

Revenue grew by 13.08% to Rs. 1149.21 Cr in Q1FY18 when compared to the previous quarter Revenue grew by 13.08% to Rs. 1149.21 Cr in Q1FY18 when compared to the previous quarter

Inline performance - Consolidated revenue at Rs11.1bn, up 8.2% yoy; EBITDA up 3.5% yoy to Rs 1.6bn; EBITDA margin at 13.8% (-70bps yoy); APAT at Rs1.1bn, +16% yoy Decorative volume growth at ~11%. Have gained marginal market share (0.1-0.2%) in FY17. General and Automotive business reported subdued performance while some uptick...

Revenue fell by 5.25% to Rs. 1112.9 Cr in Q4FY17 when compared to the previous quarter.

Background: Berger Paints is the second largest decorative paint company. Company has seven manufacturing facilities spread across India, besides 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 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% and other industries accounts...

Incorporated in 1969, Berger Paints India Ltd. is the second largest decorative paint player in India with a market share of ~ 19%. The company offers a variety of innovative painting solutions to its customers in decorative and industrial segment with its strong distribution network comprising of 75 stock points and 15,000 paint retailers.

Revenue increased by 2.46% to Rs. 1170.2 Cr in Q3FY17 when compared to the previous quarter. Also, it rose by 5.17% when compared with Q3FY16.

payments to keep business going. In order to cope with the situation, Berger's management is meeting with dealers, restoring their confidence in such a crucial juncture and urging them to...