Q4FY21 Result Update - Berger Paints India - ICICI Direct

Berger's Q4FY21 volume growth at 58% YoY (Q2:15%; Q3: 28%) is one of the best in the industry and much ahead of our expectation of 28%. Apart from a favourable base, the decorative paints volume growth was largely driven by a pick-up in construction activity in Q4 and healthy growth in construction chemical (largely water proofing business). On the other hand, a strong recovery in automotive sales helped a strong recovery in the performance of industrial paints (~15% of topline). For FY21, overall volume growth came in at 15% despite a loss of sales in Q1. However, the paint industry will witness near term demand challenges due to lockdown and margin pressure due to low operating leverage. Hence, we revise our revenue, earning estimates downward by ~5% each. We believe paint demand will pick up gradually post opening up of the markets. Also, the management has reiterated strong growth momentum would continue in the water proofing segment, which will aid in future volume growth.

For details, click on the link below: Link to the report

Shares of BERGER PAINTS INDIA LTD. was last trading in BSE at Rs.797.1 as compared to the previous close of Rs. 800.4. The total number of shares traded during the day was 23744 in over 1125 trades.

The stock hit an intraday high of Rs. 804.55 and intraday low of 795. The net turnover during the day was Rs. 18951738.

Source : Equity Bulls

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