Analysts Have Made A Financial Statement On Berger Paints India Limited's (NSE:BERGEPAINT) First-Quarter Report

Last week, you might have seen that Berger Paints India Limited (NSE:BERGEPAINT) released its quarterly result to the market. The early response was not positive, with shares down 3.4% to ₹526 in the past week. The result was positive overall - although revenues of ₹31b were in line with what the analysts predicted, Berger Paints India surprised by delivering a statutory profit of ₹3.03 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Berger Paints India

Taking into account the latest results, the most recent consensus for Berger Paints India from 20 analysts is for revenues of ₹119.6b in 2025. If met, it would imply a modest 6.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 4.9% to ₹10.50. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹120.8b and earnings per share (EPS) of ₹10.46 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹510. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Berger Paints India at ₹645 per share, while the most bearish prices it at ₹410. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Berger Paints India's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.4% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Berger Paints India.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Berger Paints India's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹510, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Berger Paints India going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Berger Paints India's balance sheet, and whether we think Berger Paints India is carrying too much debt, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.