Dolat Capital is bullish on Berger Paints has recommended accumulate rating on the stock with a target price of Rs 275 in its research report dated February 12, 2018.
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Dolat Capital's research report on Berger Paints
The revenues (conso) grew by 14% YoY to ` 13.4bn, came in-line with our estimate. Standalone revenues were up 13.6% at ` 11.9bn (implied volume growth of ~10%) and subsidiary business witnessed 17.2% YoY rise in revenues. Primary analysis implies better volume growth compared to APL (~7-8%) and Nerolac (double-digit).
Outlook
Further, the company continuous efforts to improve operating efficiency will enhance operating margins. We expect Berger to report better EBITDA margin with stable demand and favorable business conditions. Valuing Berger at 38x FY20E EPS to arrive at a TP of ` 275. Upgrade to Accumulate.For all recommendations report, click here
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