- Berger Paints started operations in 1923 in a small unit in Kolkata as Hadfields India Ltd. The current promoters, the Dhingra’s , entered the company in 1991 after acquiring UB Group’s stake in the company. Berger Paints is the second largest decorative paints company in the country.
- Company is Second largest player with 17% market share.
- Decorative paints constitute 70% of the Rs 170bn paints market. The per capita consumption of paints in India is very low at 1.5 kgs/year compared to 15-20 kgs in developed countries. We expect decorative paints market to grow at a healthy rate in the future.
- Berger is poised for a strong growth ahead, given the inherent growth in the decorative as well industrial paint segment and the company’s increasing aggression to enhance its capacity and distribution reach, especially in the southern region. We expect the company to benefit from increasing size and scale.
- Aggressive recoveries and provisions have helped SIB reduce its NNPA from 3.8% to 0.4% of advances.As the bank continues to aggressively provide for the NPAs, we expect the net NPAs to remain at 0.3% of advances and provision cover to remain stable.
- Company is gaining considerable size and scale with healthy revenue CAGR and increasing shift towards premium products enhancing operating margins.
One can Buy with Trgt 450 2 yrs time frame.
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