Initiating Coverage- Buy Berger Paints with a target of Rs 275 By Kotak Securities

Discussion in 'Latest Brokerage Stock Buy-Sell Reports' started by Vidhi Khanna, Dec 25, 2015.

  1. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

    Joined:
    Mar 19, 2015
    Messages:
    578
    Likes Received:
    55
    Berger Paint is the second largest decorative paint company in India and third largest in domestic industrial segment. It enjoys ~19% share of organized domestic decorative market. Berger also has a presence in overseas markets, prominent ones being Nepal (where it is a significant player in decorative market) and Poland (where it is second largest player in external insulation finishing system).

    INVESTMENT ARGUMENT

    · Berger has added capacity across segments which has led to increase in volume for Berger esp. in the decorative volume growth which was ahead of market for FY15

    · With improving macro environment and benign raw material situation, we expect the EBIDTA margins of the company to improve 240 bps over FY15 to FY17E

    Click here to download research report
     
Loading...