ICICI Securities maintains hold on Berger Paints India, raises target price to Rs 560

ICICI Securities has maintained hold rating on Berger Paints India in the long term and revised target price to Rs 560 from Rs 480. Shares of Berger Paints ended down 2.4% at Rs 574.25 on Thursday while the BSE Sensex closed 163.37 points up (+0.40%) at 41,306.03.

Company Financials



For the quarter ended 31-12-2019, the company has reported a Consolidated sales of Rs 1695.87 Crore, down -1.20 % from last quarter Sales of Rs 1716.53 Crore and up 4.90 % from last year same quarter Sales of Rs 1616.70 Crore Company has reported net profit after tax of Rs 185.88 Crore in latest quarter.

The company’s top management includes Mr.Abhijit Roy, Mr.Anoop Hoon, Mr.Gurbachan Singh Dhingra, Mr.Kamal Ranjan Das, Mr.Kanwardip Singh Dhingra, Mr.Kuldip Singh Dhingra, Mr.Naresh Gujral, Mr.Pulak Chandan Prasad, Mrs.Rishma Kaur, Mrs.Sonu Bhasin. Company has S R Batliboi & Co. LLP as its auditors As on 31-12-2019, the company has a total of 971,219,780 shares outstanding.

Investment Rationale

The brokerage expects Berger to report revenue and PAT CAGRs of 12.9% and 27.8% year-on-year respectively. RoE is expected to improve to 26.3% in FY22 from 21.4% in FY19, said ICICI Secyrities. At current valuations, the stock price upside is capped, said ICICI Securities.