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Berger Paints Q1 - Market Share Gains In Value-For-Money Emulsions, Putty, Waterproofing: ICICI Securities

Berger Paints Q1 - Market Share Gains In Value-For-Money Emulsions, Putty, Waterproofing: ICICI Securities

A worker paints the surface of a basket boat. (Photographer: Maika Elan/Bloomberg)
A worker paints the surface of a basket boat. (Photographer: Maika Elan/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Berger Paints India Ltd.’s Q1 FY22 was stronger than consensus and our estimates.

We believe the company has continued to gain market shares in low priced emulsions, waterproofing and putty markets from smaller/ unorganised players.

Its revenue growth trajectory was slightly better than Asian Paints Ltd. but tad weaker than Kansai Nerolac Paints Ltd.

While we remain structurally positive on:

  1. Berger Paints’ strong positioning in value-for-money paints,

  2. established distribution network especially in East India,

  3. aggressive growth strategy and innovation and

  4. high probability of market share gains in ancillary segments such as waterproofing and putty,

we believe the premium valuations are unjustified.

Click on the attachment to read the full report:

ICICI Securities Berger Paints Q1FY22 Results Update.pdf

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