Berger Paints Q1 Review - Strong Performance Continues: Dolat Capital

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Dolat Capital Report

Berger Paints India Ltd.’s Q1 FY22 results came ahead of our estimates as the impact of lockdown was not as severe as we anticipated.

Revenue growth was in line with Asian Paints Ltd. (up 91%), but was lower than Kansai Nerolac Paints Ltd. (up 120%).

Indigo Paints Ltd. reported up 49% growth.

The company took cumulative price increase of ~5% in decorative and is contemplating further, particularly in industrial business.

Being the second-largest company in the domestic decorative paint industry, Berger Paints is likely to benefit further, due to-

1. rising distribution reach,

2. strong presence in urban markets,

3. attractive product offering in all categories, and

4. calibrated pricing.

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