Berger Paints - Competitive Intensity Not Significant As Yet: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Demand environment continues to remain sluggish and no significant improvement is expected sequentially. For Berger Paints India Ltd., the mix is likely to improve in Q2 FY25 leading to a reduction in volume and value gap, as the company is seeing some traction in the premium part of the portfolio. There has been no significant impact of competition for the company as the new entrant is largely targeting markets where the leader has a strong presence. The company has increased its focus on the construction chemicals side (~10-15% salience). While the average selling price is low, margins are higher in this segment. Salience can improve to ~20% in the coming years  While crude prices have seen some correction, crude derivatives like Monomers have seen an increase. The benefit is expected to come with a lag; but some improvement is expected in gross margin in Q2 FY25 and beyond. However, our Ebitda margin forecast at 16.6% for FY25 is already at the upper end of the guidance of 15-17% and therefore we have not made any changes to estimates. Current valuation of ~49 times FY26E earnings per share however seems fair as we maintain our hold rating valuing the stock at ~44 times September-26E EPS..Click on the attachment to read the full report:.Crompton Greaves - Operating Leverage, Premiumisation To Drive Margins: Nirmal Bang.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Berger Paints - Competitive Intensity Not Significant As Yet: Nirmal Bang

The brokerage maintains 'Hold' rating as it awaits a better entry point.

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Berger Paints - Competitive Intensity Not Significant As Yet: Nirmal Bang

The brokerage maintains 'Hold' rating as it awaits a better entry point.

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