Berger Paints Multibagger 3 yrs time frame

Berger Paints Multibagger 3 yrs time frame

• Found Lewis Berger laid the foundations in India in 1923, today, Berger Paints India Limited is the second largest paint company in the country with a consistent track record of being one of the fastest growing paint company, quarter on quarter, for the past few  years.
• Annual turnover of the company is around 3600 crores.Headquartered at Kolkata, with 11 strategically located manufacturing units and  about 170 sales offices( all including those belonging to the Company’s own division and subsidiaries)
• Employee strength of about 2,500 and a countrywide distribution network of 15,000+ dealers, Berger is acclaimed as a game changer in the sector with a vibrant portfolio of paints and tailor-made customer services in every paint segment.
• Berger cater various products like interior wall coating, exterior wall coating,Metal and wood paints,protective coating, undercoat and construction chemicals
• Company sales has increased from 1600 crores 5 yrs back to 3600 crores, shows the pace at which this company is growing.
• Profits have increased by 17 % yoy showing good return on investment.
• Promoters are holding close to 60 % and the stock is at the face value of 2.
• Stock is trading at 233 and could become potential multibagger in coming years with low oil prices which constituent of 80 % of raw material.

Berger Paints - Mulitbagger Trgt 450 2 yrs time frame

• 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.