Hold Berger Paints (India), target price Rs 670: ICICI Direct

ICICI Direct has hold call on Berger Paints (India) with a target price of Rs 670. The current market price of Berger Paints (India) is Rs 613.95. Time period given by analyst is a year when Berger Paints (India) price can reach defined target.

Berger Paints (India), incorporated in the year 1923, is a Large Cap company (having a market cap of Rs 59659.91 Crore) operating in Building Materials sector.

Berger Paints (India) key Products/Revenue Segments include Paints, Enamels, Varnishes, Contract Revenue, Other Operating Revenue and Scrap for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 2458.70 Crore, down -9.09 % from last quarter Total Income of Rs 2704.47 Crore and up 11.42 % from last year same quarter Total Income of Rs 2206.63 Crore. Company has reported net profit after tax of Rs 208.20 Crore in latest quarter.

The company’s top management includes Mr.Kuldip Singh Dhingra, Dr.Anoop Kumar Mittal, Mrs.Sonu Halan Bhasin, Mr.Naresh Gujral, Mr.Pulak Chandan Prasad, Mrs.Rishma Kaur, Mr.Kanwardip Singh Dhingra, Mr.Abhijit Roy, Mr.Gurbachan Singh Dhingra, Mr.Anoop Hoon. Company has S R Batliboi & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 97 Crore shares outstanding.

Investment Rationale
Increased focus on the ‘water proofing & building chemical’ category will continue to drive revenue growth for Berger. Construction chemicals will form ~10% revenue of decorative paints in the next two years. Additionally, benign raw material prices to support margin expansion.

Promoter/FII Holdings
Promoters held 74.99 per cent stake in the company as of 31-Mar-2023, while FIIs owned 10.64 per cent, DIIs 3.46 per cent.