Berger Paints India Ltd - Weak quarter, Retain Accumulate - Emkay

Reco: ACCUMULATE
CMP: Rs 144
Target Price: Rs 152

- Berger's performance was below expectation, driven by muted domestic volume growth (+3.3%); Consol sales grew ~16% yoy to Rs8.0 bn and APAT grew 19.5% to Rs444 mn.

- Key positives: Gaining market share as it delivered volume growth of 3.3% (Asian Paints: -2% yoy); gross margin expansion by 143bps.

- Key negatives: International business continues to be under pressure with sales growth of meager 4.2% and EBITDA decline of 59.5%.

- Margin expansion to continue; key regions (South and East India) less impacted by deficient monsoon - volume to remain resilient. Maintain ACCUMULATE rating.

Source : Equity Bulls

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