Berger Paints Q4 Review: Dolat Capital Downgrades To 'Add', But Hikes TP On Sustained Market Share Gains

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Berger Paints India Ltd.’s Q4 FY25 results were ahead of our estimate. Despite muted consumer sentiments, the company’s standalone volume grew by 7.4%, while revenue grew by 4.4%. On a five-year CAGR basis, revenue grew by 12.6%.

The performance was better than the competition; Asian Paints/Kansai Nerolac posted -4.3/+2.7% respectively.

Gross margin expanded by 200 bps to 42.7% due to-

1. favorable raw material trends,

2. improved product mix and marginal price hikes and

3. reduction in overheads and cost control strategies.

Furthermore, Ebitdam expanded by 190 bps, led by higher operating efficiencies and high single-digit volume growth. Going ahead, Ebitdam is expected to remain in the 15-17% range.

We have upward revised our FY26/27E EPS by 0.6/1.4% at Rs 11.4/12.8. Valuing the stock at 48 times FY27E EPS, we upgrade target price at Rs 616.

However, due to the recent run up in the stock price, we downgrade our rating to ‘Accumulate’.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.