Berger Paints
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Berger Paints' management has expressed a confident long-term outlook, emphasizing the structural growth potential in the Indian decorative and industrial coatings market. Key developments include a focus on AI-driven operational efficiencies, expansion of manufacturing capacity, and deepening distribution in rural areas, which are expected to drive revenue growth. The company anticipates double-digit volume growth, supported by strong demand in construction chemicals and wood coatings, alongside strategic price hikes to counteract raw material cost pressures. Vista's financial outlook reflects this optimism, forecasting accelerating revenue growth and stable margins, with a current valuation aligned with intrinsic value. However, headwinds such as raw material price volatility and competitive pressures remain pertinent. The macro environment in India, characterized by robust growth and contained inflation, further supports Berger's outlook. Over the next 12-24 months, key opportunities include leveraging digital tools for efficiency and expanding product offerings, while watchpoints include geopolitical risks and ongoing supply chain challenges
Why We Like This Stock
- Management's focus on AI-driven efficiencies and distribution expansion is expected to enhance revenue growth
- Anticipated double-digit volume growth in key segments indicates strong demand and market share retention
- The macroeconomic environment in India remains supportive, with stable inflation and robust growth prospects
Things To Watch Out For
- Raw material price volatility poses a risk to margins and overall profitability
- Competitive pressures in the paints and coatings industry may impact market share and pricing strategies
- Geopolitical disturbances and supply chain uncertainties could hinder operational performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 11,199 | 11,545 | 11,880 | 12,744 | 13,442 |
| Profit Before Tax (Cr.) | 1,550 | 1,552 | 1,541 | 1,658 | 1,752 |
| PBT Margin | 13.8% | 13.4% | 1297.1% | 13.0% | 13.0% |
| Net Profit (Cr.) | 1,176 | 1,170 | 1,154 | 1,244 | 1,313 |
| Earnings Per Share | 10.1 | 10.0 | 9.9 | 10.7 | 11.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Asit Mehta | ▲ Buy | 610 | 13-May-2026 |
| HDFC Securities | ► Add | 540 | 13-May-2026 |
| HSBC | ► Hold | 470 | 02-Apr-2026 |
| ICICI Securities | ► Hold | 550 | 13-May-2026 |
| Investec | ► Hold | 525 | 08-May-2026 |
| Kotak Securities | ▼ Sell | 515 | 13-May-2026 |
| Macguire | ▼ Reduce | 395 | 13-May-2026 |
| Moneycontrol | ► Equalweight | nan | 11-Jun-2026 |
| Morgan Stanley | ▼ Underweight | 429 | 06-Aug-2026 |
| Nomura | ▲ Buy | 650 | 13-May-2026 |
Company Overview
Show Company Profile
Berger Paints India Limited manufactures and sells paints for home, professional, and industrial users in India and internationally. The company offers interior wall coatings, including designer finishes, interior emulsions, and ceiling paints; exterior wall coatings comprising exterior emulsions and textures, and roof and floor coatings; specialty industrial coatings; putty and cement paints; solvent, interior, exterior, metal, and wood primers; waterproofing solutions; wood finishes; enamels; aerosol spray paints, and DIY kits and stickers. It also provides automotive, fireproof, protective, floor, and powder coatings; road markings; construction chemicals, flooring compounds, bitumen and coal tar-based products, sealants and adhesives, and anti-corrosive coatings; lacquers; and various sanitization products. In addition, the company offers acrylic, silicate, and mineral plasters; thermal insulation adhesives; mortars; ready to use coat, wood effect, ribbed effect, concrete effect, and 3D effect; gel adhesives; and coil coating solutions. The company was formerly known as British Paints (India) Limited and changed its name to Berger Paints India Limited in December 1983. The company was incorporated in 1923 and is based in Kolkata, India. Berger Paints India Limited is a subsidiary of U. K. Paints India Private Limited.