Berger Paints share price target: Brokerages cut targets after Q4 results. Should you buy or sell?

Berger Paints share price target: Berger Paints India stock on Thursday, May 16 hogged the limelight on Dalal Street, as brokerages trimmed their target prices on paint manufacturer stock following a mixed set of financial results for the January to March period.

Berger Paints share price target: Brokerages cut targets. Should you buy or sell?

Morgan Stanley has maintained an underweight call on Berger Paints India with a reduced target of Rs 423 from Rs 471 earlier. In addition, Macquarie has retained an underperform call with a cut in target to Rs 435 from Rs 490. 

Nomura has maintained a reduce rating on the stock with a cut in target to Rs 450 from Rs 515.

Meanwhile, HSBC has continued with a buy call on the stock. The brokerage however has trimmed the target by Rs 30 to Rs 600 per share. The brokerage highlighted the following key points in its note: 

• Strong 13.9 per cent  YoY volume growth in Q4
• Value growth +2.7 per cent dragged down by price cuts & inferior mix
• Gross margin high and stable
• High Add expenses & plower value growth led to a 5 per cent decline in operating income
• Competitive concerns look overdone, FY25 volume outlook strong, risk-reward favourable

Berger Paints results Q4 2024

Berger Paints posted a 19.68 per cent increase in consolidated net profit to Rs. 222.62 crore in the fourth quarter ended March 2024.

Consolidated revenue from operations in the quarter under review stood at Rs. 2,520.28 crore as against Rs. 2,443.63 crore in the corresponding period of the previous year. Read more on Berger Paints Q4 results 

Berger Paints dividend

Berger Paints recommended a dividend of Rs 3.5 per equity share of the face value of Re 1 each for the financial year 2023-24 subject to approval of the shareholders at the upcoming annual general meeting.

Management Outlook 

Berger Paints India Managing Director & CEO Abhijit Roy said, "We gained market share again in FY24 and as a milestone crossed Rs. 10,000 crore in revenue and PAT of Rs. 1,000 crore on a stand-alone basis, a significant event on our 100th year in India." 

The company delivered a double-digit improvement in profitability with all the business lines delivering well with strong double-digit volume growths and improvements in profitability especially in the industrial segment, he added.

On the outlook, Roy said, "We remain confident of an improved demand scenario in the upcoming year and have prepared for the same with the launch of multiple innovative new products in the paint, coatings and waterproofing segments to ensure that we provide relevant solutions to the changing needs of our customers."

Berger Paints share price today

The Berger Paints stock closed at Rs 490.9, up 1.2 per cent on NSE.

(with PTI Inputs)

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