Berger Paints Q3 Results Review — Dolat Capital Upgrades The Stock To 'Buy', Sees 20% Upside

Despite muted consumer sentiments, Berger Paints’ standalone volume grew by 7.4%, while revenue grew by 0.4%. On a four-year CAGR basis, revenue/volume grew by 16.7/15.6%. The performance was better than the competition; Asian Paints/Kansai Nerolac/Indigo Paints posted -6.1/+0.2/-4.0% respectively..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 Q3 FY25 results were in line with our estimate. Despite muted consumer sentiments, the company’s standalone volume grew by 7.4%, while revenue grew by 0.4%. On a four-year CAGR basis, revenue/volume grew by 16.7/15.6%. The performance was better than the competition; Asian Paints/Kansai Nerolac/Indigo Paints posted -6.1/+0.2/-4.0% respectively. On standalone basis, gross margin contracted by 50bps to 39.8% due to- ~5% price reduction in the base quarter, currency depreciation in Q3 FY25 andinventory impact of monomer price increase. Furthermore, Ebitdam contracted by 50 bps due to higher employee costs. However, it has improved sequentially led by specific operating leverage. Going ahead, Ebitdam is expected to remain in 15-17% range. We have downward revised our FY25E EPS by 4.8% to Rs 9.4, however, maintained FY26/27E EPS at Rs 11.3/12.7. Valuing the stock at 45x FY27E EPS, we maintain target price at Rs 569. Considering the recent fall in stock price, we upgrade the stock to ‘Buy’. .Click on the attachment to read the full report:.Indigo Paints Q3 Review - Dolat Capital Upgrade To ‘Accumulate’ Rating, But Lowers Target Price — Here's Why.DISCLAIMERThis 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.

Berger Paints Q3 Results Review — Dolat Capital Upgrades The Stock To 'Buy', Sees 20% Upside

Considering the recent fall in stock price, Dolat Capital upgrade the stock to ‘Buy’.

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