Berger Paints - Q3FY12 Result Update - Emkay

Reco: ACCUMULATE
CMP: Rs 100
Target Price: Rs 109

Core argument intact, Retain Accumulate

- Berger Paints report 22% yoy growth in standalone APAT to Rs449 mn on expected lines; Lower Ebidta margins (down 50 bps to 9.6%) get offset by strong volume (12-13%)

- Poland and Nepal operations report Ebidta margin pressure; Consolidated APAT at Rs491 mn was Rs20 mn lower then expectations of Rs514 mn

- Eyeing price increase in industrial and decorative portfolio in Q4FY12; Would regain Ebidta margins in FY13E

- Retain our FY12E and FY13E EPS of Rs 5.1/share and Rs 6.2/share, respectively. Maintain ACCUMULATE rating with target price of Rs 109/share.

Source : Equity Bulls

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