Stock Performance and Market Context
On 2 Feb 2026, Berger Paints India Ltd’s share price fell to an intraday low of Rs.453.35, representing a 2.05% decline on the day and a 1.37% drop compared to the previous close. This marks the eighth consecutive day of losses for the stock, which has declined by 11.47% over this period. The stock’s performance today notably lagged behind the paints sector, underperforming by 2.77%.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum. In contrast, the broader market, represented by the Sensex, recovered sharply after a negative opening, gaining 558.73 points to trade at 81,114.41, a 0.48% increase. The Sensex remains below its 50-day moving average, though the 50DMA is positioned above the 200DMA, indicating mixed technical signals for the broader market.
Long-Term Price Trends and Relative Performance
Over the past year, Berger Paints India Ltd has generated a negative return of 7.19%, underperforming the Sensex, which posted a positive return of 4.59% during the same period. The stock’s 52-week high was Rs.604.60, indicating a substantial decline of approximately 25% from its peak to the current low. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the past three annual periods.
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Financial Metrics and Profitability Concerns
Berger Paints reported negative quarterly results in September 2025, with a Profit After Tax (PAT) of Rs.206.29 crore, reflecting a sharp decline of 29.4% compared to the average of the previous four quarters. This drop in profitability has contributed to the stock’s subdued performance.
The company’s Return on Capital Employed (ROCE) for the half-year ended was recorded at 16.05%, the lowest level observed in recent periods. Additionally, the Debtors Turnover Ratio stood at 0.63 times, indicating slower collection efficiency relative to historical averages.
Valuation and Credit Metrics
Despite recent setbacks, Berger Paints maintains a strong long-term fundamental profile. The company’s average Return on Equity (ROE) over time is 21.37%, signalling solid profitability on shareholders’ funds. Net sales have grown at an annual rate of 15.39%, demonstrating healthy top-line expansion over the years.
From a credit perspective, the company exhibits a low Debt to EBITDA ratio of 0.38 times, underscoring its capacity to service debt obligations comfortably. The current ROE stands at 17.6%, and the stock trades at an attractive Price to Book Value ratio of 8.6, which is a discount relative to its peers’ historical valuations.
Sector Position and Market Capitalisation
Berger Paints India Ltd is the second largest company in the paints sector by market capitalisation, valued at Rs.54,008 crore, trailing only Asian Paints. The company accounts for 16.90% of the sector’s total market capitalisation. Its annual sales of Rs.11,707.34 crore represent 19.32% of the industry’s revenue, highlighting its significant presence in the paints market.
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Mojo Score and Rating Update
Berger Paints currently holds a Mojo Score of 43.0 and a Mojo Grade of Sell, reflecting a downgrade from its previous Hold rating as of 12 Jan 2026. The Market Cap Grade is rated at 2, indicating a moderate market capitalisation relative to other stocks in the universe. These ratings encapsulate the stock’s recent performance trends and financial metrics.
Shareholding and Ownership
The majority ownership of Berger Paints India Ltd remains with promoters, maintaining a stable shareholding structure. This ownership concentration is typical for companies of this scale in the sector and contributes to governance continuity.
Summary of Key Concerns
The stock’s decline to a 52-week low is underpinned by several factors including the recent fall in quarterly profits, subdued ROCE, and a low debtors turnover ratio. The persistent underperformance relative to the Sensex and sector peers over multiple years further highlights challenges in maintaining market confidence. The technical indicators, with the stock trading below all major moving averages, reinforce the current negative momentum.
Long-Term Fundamentals Remain Robust
Despite the recent price weakness, Berger Paints continues to demonstrate strong long-term fundamentals, including consistent sales growth, solid ROE, and a healthy debt servicing capacity. The valuation metrics suggest the stock is trading at a discount compared to historical peer averages, reflecting the market’s cautious stance amid recent results and price action.
Conclusion
Berger Paints India Ltd’s fall to Rs.453.35 marks a significant technical milestone as the stock reaches its lowest level in a year. The combination of recent earnings decline, valuation adjustments, and technical weakness has contributed to this outcome. While the company retains strong underlying fundamentals and a prominent sector position, the current market environment and financial indicators have weighed on its share price performance.
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