Buy Berger Paints, target price Rs 610: Motilal Oswal

Motilal Oswal has given buy rating to Berger Paints with a target price of Rs 610. The share price moved up by 1.48 per cent from its previous close of Rs 582.40. The stock’s last traded price is Rs 591.55.

Berger Paints (India) Ltd., incorporated in the year 1923, is a Large Cap company (having a market cap of Rs 57807.00 Crore) operating in Building Materials sector.

Berger Paints (India) Ltd. key Products/Revenue Segments include Paints, Enamels, Varnishes which contributed Rs 5608.49 Crore to Sales Value (98.53 % of Total Sales), Other Operating Revenue which contributed Rs 52.29 Crore to Sales Value (0.91 % of Total Sales), Contract Revenue which contributed Rs 20.58 Crore to Sales Value (0.36 % of Total Sales) and Scrap which contributed Rs 10.33 Crore to Sales Value (0.18 % of Total Sales)for the year ending 31-Mar-2020.


Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 930.76 Crore, down 31.30 % from last quarter Sales of Rs 1354.84 Crore and down 45.78 % from last year same quarter Sales of Rs 1716.53 Crore. The Company reported net profit after tax of Rs 19.56 Crore in latest quarter.

Investment Rationale
The brokerage said that the stock has taken support at its rising support trend line with respect of 50 DEMA.

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of June 30, 2020, while FIIs held 11.7 per cent, DIIs 3 per cent and public and others 10.3 per cent.