Berger Paints India tops quarterly earnings view, bets on industrial strength

Berger Paints India

14/05/2025 10:34

May 14 (Reuters) - Berger Paints India BRGR.NS reported quarterly results above expectations on Wednesday, with strong industrial demand cushioning retail weakness.

Its shares rose 2.5% in the afternoon trading.

"The tough market conditions continued into the fourth quarter with muted urban demand and increased competitive intensity," said CEO Abhijit Roy. "The industrial segment... saw resilient performance, which bodes well for us in the months ahead."

Consolidated net profit rose to 2.62 billion rupees ($30.7 million) during January to March, up 18% on year. Analysts on average had expected a profit of 2.43 billion rupees, per data compiled by LSEG.

Revenue from operations rose over 7% to 27.04 billion rupees, surpassing estimates.

For further earnings highlights, click nL8N3RM0OP

KEY CONTEXT

Indian paintmakers have been battling weak consumer spending sentiment for a few quarters amid increased competition in the sector following the entry of Grasim Industries GRAS.NS.

Analysts have flagged that players with a more diversified customer base, such as Berger, are better-placed in a soft retail environment.

Last week, market leader Asian Paints ASPN.NS forecast that the worst demand scenario in decades is likely to persist in the near term, while peer Kansai Nerolac KANE.NS posted a surprise profit fall.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Berger Paints India Ltd
BRGR.NS
49.94
31.23
8.54
8.79
Hold
20
1.09
0.65
Asian Paints Ltd
ASPN.NS
48.00
32.75
5.08
8.09
Sell
33
1.00
1.05
Kansai Nerolac Paints Ltd
KANE.NS
28.86
17.62
7.63
34.61
Hold
12
0.92
0.96
Akzo Nobel India Ltd
AKZO.NS
33.40
21.12
8.75
11.10
Buy
2
0.89
3.19

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JANUARY-MARCH STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 85.2675 Indian rupees

BRGR Q4 https://tmsnrt.rs/3F8e1cw

 (Reporting by Hritam Mukherjee in Bengaluru)

 ((Hritam.Mukherjee@thomsonreuters.com; Twitter: @MukherjeeHritam;))