Berger Paints
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Berger Paints is positioned for robust growth, driven by management's confident outlook and strategic initiatives aimed at enhancing operational efficiency and market penetration. Recent earnings calls highlight a successful transition from price-led value compression to healthy volume growth, particularly in the decorative segment and construction chemicals. Management's focus on maintaining operating margins within the 15-17% range through a favorable product mix and cost management supports Vista's forecast of accelerating revenue growth and improving margins. The company's proactive approach to leveraging AI for operational efficiency and expanding its distribution network in rural markets further solidifies its competitive position. However, headwinds from raw material price volatility and competitive intensity remain pertinent, necessitating careful monitoring. Overall, the favorable demand dynamics in the paints and coatings industry, coupled with Berger's strategic initiatives, align with Vista's positive financial outlook, projecting a 14% upside with a 12-month target price of ₹560. Key opportunities include strong festive demand and premium product innovation, while watchpoints encompass input cost pressures and competitive dynamics
Why We Like This Stock
- Successful transition to volume growth, enhancing revenue potential
- Management's focus on premium product innovation and operational efficiency supports margin expansion
- Strong demand in urban and rural markets bolsters long-term growth prospects
Things To Watch Out For
- Rising raw material costs may pressure margins and profitability
- Intense competition could limit pricing flexibility and market share gains
- Macroeconomic uncertainties, including inflation and crude oil price volatility, pose risks to consumer spending
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 11,199 | 11,545 | 11,880 | 12,740 | 13,605 |
| Profit Before Tax (Cr.) | 1,550 | 1,552 | 1,541 | 1,652 | 1,786 |
| PBT Margin | 13.8% | 13.4% | 13.0% | 13.0% | 13.1% |
| Net Profit (Cr.) | 1,176 | 1,170 | 1,154 | 1,240 | 1,339 |
| Earnings Per Share | 10.1 | 10.0 | 9.9 | 10.6 | 11.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 575 | 06-Aug-2026 |
| Morgan Stanley | ▼ Underweight | 429 | 06-Aug-2026 |
| Nomura | ▲ Buy | 675 | 06-Aug-2026 |
| Macguire | ▼ Reduce | 425 | 17-Jul-2026 |
| Moneycontrol | ► Equalweight | nan | 11-Jun-2026 |
| Asit Mehta | ▲ Buy | 610 | 13-May-2026 |
| HDFC Securities | ► Add | 540 | 13-May-2026 |
| Kotak Securities | ▼ Sell | 515 | 13-May-2026 |
| Investec | ► Hold | 525 | 08-May-2026 |
| HSBC | ► Hold | 470 | 02-Apr-2026 |
Company Overview
Show Company Profile
Berger Paints India Limited manufactures and sells paints 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; putty and cement paints; solvent, interior, exterior, metal, and wood primers; enamels; wood finishes; waterproofing solutions; and tiling solutions. It also provides acrylic, silicate, and mineral plasters; thermal insulation adhesives; mortars; ready to use coat, wood effect, ribbed effect, concrete effect, and 3D effect; gel adhesives for ceramic tile flooring. 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 operates as a subsidiary of U. K. Paints India Private Limited.