BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Report
Berger Paints India Ltd. has gone toe-to-toe with dominant leader Asian Paints Ltd. over FY10-20 despite the former's higher industrial salience, implying that its decorative biz has outpaced Asian Paints.
Growth has been smartly navigated alongside improving profitability via aggressive product innovation/premiumisation, efficient marketing and distribution expansion (gross margin/Ebitda and management fees differential has reduced from 856/924 basis point to 320/560 basis point over FY10-20).
While this narrative will continue, out performance is unlikely to be as steep over FY20-23, given that -
1. Berger Paints will have to contend with Asian Paints stepped-up aggression at the bottom of the pyramid and 2. margin levers seem to be missing.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.