Berger Paints India Ltd Fundamental Analysis

Berger Paints India Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹61,980 crore, PE ratio of 53.1, debt-to-equity ratio of 0.14, and return on equity of 23.5%. These figures reflect the company’s financial health and current market valuation.

Berger Paints India Ltd Overview

Berger Paints India Ltd is a leading paint manufacturer in India, offering a wide range of decorative and industrial coatings. Known for its strong market presence, the company focuses on innovation, quality, and sustainability in its product offerings.

The company has a market capitalization of ₹61,980 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 21.8% below its 52-week high and 21.1% above its 52-week low.

Berger Paints India Financial Results

Berger Paints Ltd’s financial results for FY24 show a sales increase to ₹11,199 crore from ₹8,762 crore in FY22. Net profit also rose to ₹1,170 crore from ₹832.95 crore during the same period.

1. Revenue Trend: Sales grew by 6% in FY24, reaching ₹11,199 crore from ₹10,568 crore in FY23, demonstrating consistent growth in Berger Paints’ revenue.

2. Equity and Liabilities: Equity and liabilities details aren’t provided, but the company’s increasing sales and profit suggest a healthy financial position.

3. Profitability: Operating profit improved significantly in FY24, reaching ₹1,861 crore from ₹1,487 crore in FY23, with the Operating Profit Margin (OPM) rising to 17%.

4. Earnings Per Share (EPS): EPS increased to ₹10.02 in FY24, up from ₹8.86 in FY23, indicating stronger earnings growth for shareholders.

5. Return on Net Worth (RoNW): While specific RoNW data isn’t provided, the growth in profitability and EPS suggests an improvement in RoNW.

6. Financial Position: With a rise in EBITDA to ₹1,925 crore in FY24 and a consistent dividend payout ratio, Berger Paints maintains a strong financial position.

Berger Paints India Financial Analysis

*All values in ₹ Crores

Berger Paints India Company Metrics

Berger Paints India Ltd, with a market capitalization of ₹61,980 crore, showcases a robust financial profile. The company’s stock performance reflects a strong position in the market, supported by solid profitability metrics and a stable dividend yield.

1. Market Cap: The market capitalization of ₹61,980 crore highlights Berger Paints’ significant market presence and investor confidence. This substantial valuation underscores the company’s strong financial health and its role as a leading player in the paint industry.

2. Book Value: With a book value of ₹46.1 per share, Berger Paints indicates substantial intrinsic value. This measure reflects the company’s net asset value per share, providing a basis for assessing its financial stability.

3. Face Value: The face value of ₹1.00 per share represents the nominal value assigned to each share. This figure is crucial for understanding the company’s capital structure and the relative value of its shares in the context of market pricing.

4. Turnover: An asset turnover ratio of 1.37 shows Berger Paints’ efficiency in utilizing its assets to generate revenue. This metric reflects the company’s ability to convert its asset base into sales, indicating strong operational performance.

5. PE Ratio: The stock’s P/E ratio of 53.1 suggests a premium valuation relative to earnings. Higher P/E ratios can indicate strong growth expectations.

6. Debt: With a debt level of ₹753 crore and a debt-to-equity ratio of 0.14, Berger Paints maintains a low leverage position.

7. ROE: A return on equity (ROE) of 23.5% demonstrates Berger Paints’ ability to generate substantial profit relative to shareholders’ equity. This high ROE reflects effective management and strong financial performance, benefiting shareholders through superior returns.

8. EBITDA Margin: The EBITDA margin of 31.8% highlights Berger Paints’ strong operational efficiency. This high margin indicates the company’s ability to generate substantial earnings before interest, taxes, depreciation, and amortization, underscoring robust profitability.

9. Dividend Yield: With a dividend yield of 0.66%, Berger Paints offers modest returns to shareholders through dividends. While relatively low, the yield reflects a focus on reinvesting profits for growth and maintaining a balance between returns and expansion.

Berger Paints India Stock Performance

The table shows Berger Paints’ investment returns over various periods. Over the past 5 years, the investment yielded a 12% return. In contrast, the returns were negative, with -8% over 3 years and -9% over the last year, reflecting recent underperformance.

Example

An investor invested ₹100,000 in Berger Paints 5 years ago. With a 12% return over this period, the investment would have grown to ₹112,000.

And if he put ₹100,000 into Berger Paints 3 years ago, he would have seen their investment decline by 8%, resulting in a value of ₹92,000 today.

However, if the same investor had invested ₹100,000 just 1 year ago, the return would have been -9%, reducing the value to ₹91,000.

Berger Paints India Peer Comparison

Berger Paints, with a market cap of ₹63,786.4 crore, demonstrates a PEG ratio of 2.86 and a 3-month return of 11.67%. Despite a 1-year return of -6.11%, its ROCE stands at 27.51%, reflecting strong operational efficiency among its peer competitors like Asian Paints, Kansai Nerolac, Akzo Nobel, Indigo Paints etc.

Berger Paints India Shareholding Pattern

The shareholding pattern of Berger Paints reflects stable promoter ownership at 74.99% across all quarters. Foreign Institutional Investors (FIIs) hold 7.51%, showing a decline from previous quarters, while Domestic Institutional Investors (DIIs) increased their stake to 7.58%. Retail and other investors account for 9.92%.

*All values in %

Berger Paints India History

Berger Paints India traces its origins back to the 1920s when Hadfield’s (India) Limited was established in Calcutta. In 1947, British Paints acquired Hadfield’s, marking the beginning of British Paints (India) Limited, later renamed Berger Paints India in 1983.

Throughout the decades, Berger Paints expanded its operations across India, opening sales offices in major cities and modernizing its manufacturing facilities. The company saw significant growth in the 1970s and 1980s, introducing new products and establishing itself as a leading brand in the Indian paint industry.

The 1990s and 2000s were transformative for Berger Paints, marked by strategic acquisitions, including Rajdoot Paints Ltd and Sherwin Williams Paints’ architectural operations. The company also established joint ventures and expanded its global presence, making it a prominent name in the paint industry.

How To Invest In Berger Paints India Ltd Share?

Investing in Berger Paints India Ltd shares is a straightforward process:

• Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
• Complete KYC: Submit necessary documents for KYC verification.
• Fund Your Account: Deposit funds into your trading account.
• Buy Shares: Search for Berger Paints India Ltd shares and place your buy order

Berger Paints India Limited Fundamental Analysis – FAQs

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.