ScoreWhy is Berger Paints India Ltd ?
1
High Management Efficiency with a high ROE of 19.62%
2
Company has a Debt to Equity ratio (avg) of 0.08 times
3
Poor long term growth as Net Sales has grown by an annual rate of 9.80% and Operating profit at 6.39% over the last 5 years
4
Positive results in Jun 26
- PBT LESS OI(Q) At Rs 503.69 cr has Grown at 40.4% (vs previous 4Q average)
- DPR(Y) Highest at 41.39%
- NET SALES(Q) Highest at Rs 3,583.75 cr
5
With ROE of 16.9, it has a Fair valuation with a 7.7 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -16.73%, its profits have risen by 5.2% ; the PEG ratio of the company is 8.4
6
Majority shareholders : Promoters
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -16.73% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
8
With its market cap of Rs 53,280 cr, it is the second biggest company in the sector (behind Asian Paints)and constitutes 16.31% of the entire sector
- Its annual Sales of Rs 12,263.24 are 19.21% of the industry
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Berger Paints should be less than 10%
- Overall Portfolio exposure to Paints should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paints)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Berger Paints for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Berger Paints
-16.73%
-0.59
28.17%
Sensex
-9.76%
-0.72
13.51%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.80%
EBIT Growth (5y)
6.39%
EBIT to Interest (avg)
21.32
Debt to EBITDA (avg)
0.61
Net Debt to Equity (avg)
-0.09
Sales to Capital Employed (avg)
1.76
Tax Ratio
24.25%
Dividend Payout Ratio
41.39%
Pledged Shares
0
Institutional Holding
16.62%
ROCE (avg)
24.70%
ROE (avg)
19.62%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
44
Price to Book Value
7.70
EV to EBIT
34.85
EV to EBITDA
27.54
EV to Capital Employed
8.37
EV to Sales
4.29
PEG Ratio
8.38
Dividend Yield
0.88%
ROCE (Latest)
22.90%
ROE (Latest)
16.88%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
PBT LESS OI(Q)
At Rs 503.69 cr has Grown at 40.4% (vs previous 4Q average
DPR(Y)
Highest at 41.39%
NET SALES(Q)
Highest at Rs 3,583.75 cr
PBDIT(Q)
Highest at Rs 607.44 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 16.95%
PAT(Q)
At Rs 404.34 cr has Grown at 38.6% (vs previous 4Q average
EPS(Q)
Highest at Rs 3.47
-3What is not working for the Company
ROCE(HY)
Lowest at 21.17%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 305.31 cr
Loading Valuation Snapshot...
Here's what is working for Berger Paints
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 503.69 cr has Grown at 40.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 358.67 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 3,583.75 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 3,583.75 cr has Grown at 20.7% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 2,970.06 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 607.44 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 16.95%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 503.69 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 404.34 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 404.34 cr has Grown at 38.6% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 291.80 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 3.47
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Dividend Payout Ratio (DPR) - Annually
Highest at 41.39%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Berger Paints
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 305.31 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Non Operating Income - Quarterly
Highest at Rs 38.90 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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