Berger Paints (India) Ltd. share price target

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...

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...

Berger Paints 4QFY16 revenues were in line, but APAT exceeded our estimates. Revenues increased 8.6% YoY to Rs 11.3bn, led by ~14% domestic volume growth (vs. ~14% for Asian Paints). Lower RM prices pushed GM and EBITDAM to a multi-year high.

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...

Berger Paints 3QFY16 standalone results came ahead of our estimates. Revenues increased 10.1% YoY to Rs 11.7bn, led by ~13% domestic volume growth (vs. ~14% growth for Asian Paints). Lower RM prices pushed GM and EBITDA margins to a multi-year high.

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...

Berger Paints 2QFY16 results came in line with our estimates. Revenues increased by 5.7% YoY to Rs 11.7bn, led by ~10% domestic volume growth (v/s 4-5% growth by Asian Paints). Overall growth was impacted by 4.4% YoY revenue decline in subsidiaries and 27% revenue de-growth in JV Berger Becker

The big ticket urban development plan by the NDA government which is expected to cost Rs. 98000 crore - the smart cities Mission, under which 100 smart cities would be built. Further...

Capacity expansions and extensive distribution to drive revenue growth:Berger Paints India Ltd. (BPIL) has recently commissioned water based paintsmanufacturing 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.

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...