XTRAS: Berger Paint has been ranked at 200th position in the list of Fortune India 500 for 2021.
Technical Analysis:
• RSI is 60.34 indicating stock is nearly overbought
• 3.4-day MACD is above its centre and signal Line, this is a bullish indicator.
• As of Apr 05, 2022, Berger Paints India is trading at a Premium of 206% based on the estimates of Median Intrinsic Value.
• Trendline Momentum Score is 48, stock is technically neutral. Stocks with score.
• Berger Paints (India) Ltd. is trading below its 100-day SMA of 733.4
• Berger Paints (India) Ltd. is trading above its 50-day SMA of 703.7 above 70 are considered as technically Strong and below 35 are considered weak.
Analyst View:
• Company has been maintaining a healthy dividend payout of 35.86%.
• Stock is trading at 20.30 times its book value.
• Berger Paints India Ltd reported an eight percent decline in its consolidated net profit to Rs 252.97 crore for the December 2021 quarter.
• The company has delivered a poor sales growth of 10.05% over past five years.
• Company might be capitalizing the interest cost Debtor days have increased from 45.32 to 54.59 days.
Impact of War:
• The war is leading to fuel inflation and at the same time the raw material costs (RM) costs directly linked to crude will go up. In Berger Paints's case probably about 35- 40% costs get strongly influenced by crude prices.
• Also the war is not going to matter so much because they have some finished goods and raw materials which will last at least March and will possibly carry on till April.
• The solvent-based paints gets directly impacted because when the crude prices go up, the solvent prices also go up along with it. But that portion of sales in this case at least, is less than 20-25% approximately.
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