ADVERTISEMENT

Berger Paints Q2 Results Review - Inline Print: HDFC Securities

GM pain seems to have bottomed out as key input prices have been softening, the full impact of which is likely to be felt in H1.

<div class="paragraphs"><p>Paint tin and brushes. (Source:&nbsp;David Franklin/ freepik)</p></div>
Paint tin and brushes. (Source: David Franklin/ freepik)

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

HDFC Securities Institutional Equities

Berger Paints India Ltd. delivered an in-line topline at Rs 26.7 billion (20% YoY; three-year compound annual growth rate: 18%). But it fell marginally short vis-a-vis Asian Paints Ltd.’s.

On a three-year CAGR basis, it delivered 18% versus Asian Paints’ 20% (standalone). The decorative business clocked ~11/23% volume/value YoY growth (three-year value CAGR: 18.4%).

Distribution expansion has been stepped up (the company added 6,233 sales points in H1).

Ebitdam, at 13.6%, declined 228 bps YoY (oue estimate: 14.1%), mainly due to raw material inflation. However, gross margin pain seems to have bottomed out as key input prices have been softening, the full impact of which is likely to be felt in H1.

Click on the attachment to read the full report:

HDFC Securities Institutional Equities Berger Paints Q2FY23 Results Review.pdf

DISCLAIMER

This report is authored by an external party. BQ Prime 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 BQ Prime.

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