NSEI:BERGEPAINT

Stock Analysis Report

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Executive Summary

Berger Paints India Limited manufactures and sells paint products for home, professional, and industrial users in India. More Details


Snowflake Analysis

Flawless balance sheet with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Berger Paints India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BERGEPAINT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

BERGEPAINT

0.8%

IN Chemicals

-1.1%

IN Market


1 Year Return

15.1%

BERGEPAINT

16.3%

IN Chemicals

-1.4%

IN Market

Return vs Industry: BERGEPAINT underperformed the Indian Chemicals industry which returned 16.3% over the past year.

Return vs Market: BERGEPAINT exceeded the Indian Market which returned -1.4% over the past year.


Shareholder returns

BERGEPAINTIndustryMarket
7 Day-0.4%0.8%-1.1%
30 Day5.0%2.5%2.0%
90 Day15.2%14.0%6.4%
1 Year15.5%15.1%18.9%16.3%0.4%-1.4%
3 Year130.4%126.9%36.0%27.6%-3.9%-8.6%
5 Year290.4%279.1%140.2%120.2%38.9%28.5%

Price Volatility Vs. Market

How volatile is Berger Paints India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Berger Paints India undervalued compared to its fair value and its price relative to the market?

122.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BERGEPAINT (₹606.5) is trading above our estimate of fair value (₹80.18)

Significantly Below Fair Value: BERGEPAINT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BERGEPAINT is poor value based on its PE Ratio (122.3x) compared to the IN Chemicals industry average (15.3x).

PE vs Market: BERGEPAINT is poor value based on its PE Ratio (122.3x) compared to the Indian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: BERGEPAINT is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: BERGEPAINT is overvalued based on its PB Ratio (23.2x) compared to the IN Chemicals industry average (1.2x).


Next Steps

Future Growth

How is Berger Paints India forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BERGEPAINT's forecast earnings growth (27.3% per year) is above the savings rate (7.2%).

Earnings vs Market: BERGEPAINT's earnings (27.3% per year) are forecast to grow faster than the Indian market (25.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BERGEPAINT's revenue (18% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: BERGEPAINT's revenue (18% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BERGEPAINT's Return on Equity is forecast to be high in 3 years time (26%)


Next Steps

Past Performance

How has Berger Paints India performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BERGEPAINT has high quality earnings.

Growing Profit Margin: BERGEPAINT's current net profit margins (8.9%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: BERGEPAINT's earnings have grown by 12% per year over the past 5 years.

Accelerating Growth: BERGEPAINT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BERGEPAINT had negative earnings growth (-8.3%) over the past year, making it difficult to compare to the Chemicals industry average (-1.9%).


Return on Equity

High ROE: BERGEPAINT's Return on Equity (18.6%) is considered low.


Next Steps

Financial Health

How is Berger Paints India's financial position?


Financial Position Analysis

Short Term Liabilities: BERGEPAINT's short term assets (₹25.9B) exceed its short term liabilities (₹17.1B).

Long Term Liabilities: BERGEPAINT's short term assets (₹25.9B) exceed its long term liabilities (₹5.3B).


Debt to Equity History and Analysis

Debt Level: BERGEPAINT's debt to equity ratio (19.9%) is considered satisfactory.

Reducing Debt: BERGEPAINT's debt to equity ratio has reduced from 48.2% to 19.9% over the past 5 years.

Debt Coverage: BERGEPAINT's debt is well covered by operating cash flow (136.5%).

Interest Coverage: BERGEPAINT's interest payments on its debt are well covered by EBIT (13.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Berger Paints India current dividend yield, its reliability and sustainability?

0.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BERGEPAINT's dividend (0.35%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: BERGEPAINT's dividend (0.35%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: BERGEPAINT's dividends per share have been stable in the past 10 years.

Growing Dividend: BERGEPAINT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.7%), BERGEPAINT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BERGEPAINT's dividends in 3 years are forecast to be well covered by earnings (37.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Abhijit Roy (55 yo)

8.25yrs

Tenure

₹40,327,229

Compensation

Mr. Abhijit Roy has been Non-Executive Director at Berger Paints Bangladesh Ltd since October 09, 2017. Mr. Roy has been the Managing Director and Chief Executive Officer of Berger Paints India Limited sin ...


CEO Compensation Analysis

Compensation vs Market: Abhijit's total compensation ($USD543.50K) is below average for companies of similar size in the Indian market ($USD1.20M).

Compensation vs Earnings: Abhijit's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Abhijit Roy
CEO, MD & Director8.25yrs₹40.33m0.0075%
₹ 44.4m
Srijit Dasgupta
Director of Finance & CFO9.58yrs₹15.34m0.0093%
₹ 54.6m
Aniruddha Sen
Senior Vice President of Legal & Corporate Affairs0.58yr₹11.54m0.0032%
₹ 18.7m
Rishma Kaur
National Business Development Manager of Retail & Executive Director5.83yrs₹5.02m0.062%
₹ 363.9m
Kanwardip Dhingra
National Business Development Manager - Automobile & General Industrial and Executive Director5.83yrs₹5.05m0.072%
₹ 424.5m
Sunil Sharma
Presidentno data₹3.58mno data
Sujyoti Mukherjee
Vice President of Finance & Accountsno datano data0.0025%
₹ 14.9m
Arunito Ganguly
VP, Company Secretary & Compliance Officer0.50yrno datano data
Kilambi Sai
Senior Vice President of Sales & Marketing1.75yrsno datano data
Subroto Chaudhury
Group Head of HR & HRDno datano datano data
Prosanta Ghosh
Senior Vice President of Manufacturing1.75yrsno datano data
Indrajit Majumdar
Senior Vice President of Retail Slaes1.75yrsno datano data

1.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: BERGEPAINT's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Abhijit Roy
CEO, MD & Director8.25yrs₹40.33m0.0075%
₹ 44.4m
Rishma Kaur
National Business Development Manager of Retail & Executive Director5.83yrs₹5.02m0.062%
₹ 363.9m
Kanwardip Dhingra
National Business Development Manager - Automobile & General Industrial and Executive Director5.83yrs₹5.05m0.072%
₹ 424.5m
Gurcharan Das
Member of the Advisory Council6.17yrs₹4.00kno data
Naresh Gujral
Independent & Non-Executive Director6.17yrs₹770.00k0.00072%
₹ 4.2m
Kuldip Dhingra
Non-Executive Chairman26.25yrs₹1.95m0.57%
₹ 3.3b
Gurbachan Dhingra
Non-Executive Vice Chairmanno data₹1.15m1.06%
₹ 6.3b
Anil Bhalla
Member of the Advisory Council6.17yrs₹40.00kno data
Subir Bose
Member of the Advisory Council6.17yrs₹12.00kno data
Gerald Adams
Member of the Advisory Council6.17yrs₹16.00kno data
Sonu Bhasin
Additional Non-Executive & Independent Director1.58yrs₹870.00kno data
Anoop Hoon
Additional Non-Executive & Independent Director1.58yrs₹870.00kno data

6.2yrs

Average Tenure

68.5yo

Average Age

Experienced Board: BERGEPAINT's board of directors are considered experienced (6.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BERGEPAINT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Berger Paints India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Berger Paints India Limited
  • Ticker: BERGEPAINT
  • Exchange: NSEI
  • Founded: 1923
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹588.948b
  • Shares outstanding: 971.22m
  • Website: https://www.bergerpaints.com

Location

  • Berger Paints India Limited
  • Berger House
  • 129, Park Street
  • Kolkata
  • West Bengal
  • 700017
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
509480BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 1996
BERGEPAINTNSEI (National Stock Exchange of India)YesEquity SharesININRMay 1996

Biography

Berger Paints India Limited manufactures and sells paint products for home, professional, and industrial users in India. It offers interior wall coatings, including designer finishes, interior emulsions, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 12:35
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.