Kotak downgrades India's Berger Paints; flags margin risks, muted demand

Berger Paints India

26/09/2023 07:53

** Shares of India's Berger Paints  BRGR.NS  down as much as
1.7% at 601 rupees, after Kotak Institutional Equities
downgrades co to "sell" 
    ** Brokerage says rise in crude oil prices presents risks to
co's FY24 margins, flags muted demand in Q2 due to volatile
monsoon 
    ** Adds, BRGR more vulnerable than Asian Paints  ASPN.NS  to
Grasim Industries'  GRAS.NS  paints biz launch in Q4 
    ** Grasim likely to avoid head-on battle with ASPN, focus to
be on displacing second- to fourth-in-line brands in dealer
outlets - Kotak note 
    ** BRGR has climbed 24% so far this year, outpacing ASPN's
~6% rise 
     ** Although BRGR outperformed ASPN in decorative paints for
the last 4 quarters, quantum of outperformance does not merit
this stock outpacing, Kotak says 

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))