Buy Berger Paints for Rs 125 target: Ashish Maheshwari

In a chat with ET Now, Ashish Maheshwari, director, Globe Capital Market Ltd., shares his view on the outlook of Berger Paints.

What do you do with Berger Paints in terms of stock price performance or whether or not you would buy or sell this stock?

I would like to buy the stock and I would like to give a price target of Rs 125 for the stock. The reason is the paint industry is doing well now with 20% growth as we have seen in the last two years. Besides this, if you see peer set stock performance like Asian Paints or Kansai Nerolac Paints, they have touched their 52-week highs recently and a lot of accumulation is there in these stocks. So, the time has come for Berger also and there is a lot of interest among the Japanese paint manufacturer or chemical manufacturers to take part into Indian companies that we have seen in the Kansai taking part in Goodlass Nerolac stake. The same thing might happen with Berger and once this happens, this stock is all set to re-rate but in the short term, it may touch Rs 125.