Berger Paints India's profit cushioned by industrial demand amid retail weakness

JSW Dulux

11/02/2025 13:46

Feb 11 (Reuters) - Berger Paints India's  BRGR.NS  third-quarter profit fell less than analysts's had expected on
Tuesday, as strength in the industrial business helped cushion demand weakness from inflation-hit retail consumers.
    The company's consolidated net profit fell 1.5% to 2.95 billion rupees ($34 million) in the quarter, but came above
analysts' average estimate of 2.91 billion rupees, according to data compiled by LSEG.
    Revenue from operations rose 3.2% to 29.75 billion rupees, surpassing analysts' average estimate of 29.52 billion
rupees.
    Strong volume growth in the industrial segment, which contributes 20% of Berger's topline, helped it partially
mitigate "muted urban demand" for its decorative paints - used to paint house walls.
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3P20NR
    
    KEY CONTEXT
    Indian paintmakers have been offering heavy discounts since Grasim Industries'  GRAS.NS  foray into the sector early
last year tightened competition, and cash-strapped shoppers chose cheaper, private brands. 
    Smaller peers Kansai Nerolac  KANE.NS  and Akzo Nobel India  AKZO.NS  forecast demand pick-ups, led by the federal
government's consumption boosting measures. In contrast, market leader Asian Paints'  ASPN.NS  blamed urban stress and
also issued a grim outlook.
    
    PEER COMPARISON 
                                 Valuation (next 12     Estimates (next 12       Analysts' sentiment
                                 months)                months)                  
                      RIC        PE     EV/EBITDA       Revenue     Profit       Mean     No. of   Stock to       Div
                                                        growth (%)  growth (%)   rating*  analyst  price          yield
                                                                                          s        target**       (%)
 Berger Paints India   BRGR.NS   43.82  27.72           9.59        9.29         Hold     20       0.95           0.72
 Asian Paints          ASPN.NS   47.40  32.01           5.73        3.53         Hold     34       0.93           1.43
 Kansai Nerolac        KANE.NS   26.83  16.93           7.69        13.39        Hold     12       0.84           1.03
 Paints                                                                                                           
 Akzo Nobel India      AKZO.NS   34.95  22.45           8.03        9.76         Buy      2        0.93           3.08
    
 * 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
    
    OCTOBER-DECEMBER STOCK PERFORMANCE
 
 
 -- All data from LSEG
 -- $1 = 86.7400 Indian rupees
 

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BRGR Q3    https://tmsnrt.rs/4bbFnu9
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 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Sherry Jacob-Phillips and Savio D'Souza)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter: @MukherjeeHritam;))