Feb'25 View on Berger Paints India Ltd

Berger Paints India is engaged in the Manufacturing and selling of Paints. Berger Paints is the 2nd Largest paint company in India, the 4th Largest paint company in Asia, and the 7th Largest decorative paint company in the world. The stock after reversing at 438 is facing resistance at its 20EMA and looks to break it to make a mark near 600 (595 seems its immediate resistance). • BRGR’s consolidated revenue grew 3.2% yoy to Rs2975.1 cr (2.2% beat), • BRGR retained 15-17% EBITDA margin guidance for the foreseeable future. • Demand is a tad better, and it expects volume/value growth to improve in Q4. • Protective coatings delivered strong growth. • BRGR reported 7.4%/0.4% volume/value growth (standalone). • BRGR has been consistently gaining market share (now at 20%+). • We expect earnings to grow by 5.9% in FY26E & grow by 8.6% in FY27E. • Stock is currently trading at valuation of 41.2x P/E FY27E EPS.