Berger Paints India Limited (BERGEPAINT) AI Stock Analysis

• Market Cap: ₹475.71B
• Dividend Yield: 0.7%
• Average Volume (3M): 16.36K
• Price to Earnings (P/E): 57.7
• Beta (1Y): 0.92
• Revenue Growth: 3.90%
• EPS Growth: -5.85%
• Country: IN
• Employees: 4,445
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 2.70
• Shares Outstanding: 1,165,966,300
• 10 Day Avg. Volume: 14,760
• 30 Day Avg. Volume: 16,358
• PEG Ratio: 44.42
• Price to Book (P/B): 9.35
• Price to Sales (P/S): 4.99
• P/FCF Ratio: 68.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 9.72
• Revenue Forecast (FY): ₹119.26B

• Rating: 67 Neutral
• Price Target: ₹443.00 ▼(-16.15% Downside)
• Action: Reiterated Date: 10/17/25
• Date: Action: Reiterated 10/17/25

Berger Paints' strong financial performance is the primary driver of its stock score, supported by consistent revenue growth and robust profit margins. However, the technical indicators suggest neutral to slightly bearish momentum, and the high P/E ratio indicates potential overvaluation. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Strong balance sheet

Very low leverage and a high equity ratio give Berger financial flexibility to fund capex, network expansion or absorb demand shocks without stressing liquidity. A strong ROE indicates efficient capital use, supporting durable capacity to invest in growth or return capital over months to years.

High and sustainable margins

Elevated gross and operating margins reflect pricing power, product mix and cost control. These margins enable reinvestment into distribution, R&D and brand building and act as a structural buffer against raw material volatility, supporting profitability over the medium term.

Broad product and distribution model

A diversified portfolio across decorative and industrial coatings plus extensive dealer and tinting networks supports stable volume throughput and premium mix adoption. Broad channels and on-demand tinting help sustain recurring repaint cycles and incremental premium revenue over months to years.

Negative Factors

Declining free cash flow

A drop in free cash flow, even with decent operating cash conversion, reduces financial flexibility for dividends, share buybacks or strategic investments. If persistent, weaker FCF can constrain long-term capex, working capital needs or slow distribution expansion plans.

Modest revenue growth

Low single-digit top-line growth suggests limited near-term market-share gains or exposure to slower end-market demand. Without stronger volume or premiumization acceleration, modest growth may challenge scaling fixed-cost leverage and limit long-term earnings upside over multiple quarters.

Negative EPS growth

Falling EPS points to pressure on core earnings per share from margin shifts, higher costs or dilution. Continued EPS decline undermines reinvestment capacity and investor confidence, and if sustained could signal structural earnings headwinds rather than transitory volatility.

Berger Paints India Limited Business Overview & Revenue Model

Company Description

Berger Paints India Limited manufactures and sells paints for home, professional, and industrial users in India and internationally. The company offers interior wall coatings, including designer finishes, interior emulsions, ceiling paints, and distempers; exterior wall coatings comprising exterior emulsions and exterior cement paints; exterior texture; self-painting, repair, enamel paint, glow in the dark, wall stencil, wall stickers, multipurpose seal tapes, and enamel spray kits; metal, glass, and wood finishes; and undercoats, such as putty, interior, exterior, and metal primers. It also provides waterproofing solutions; construction chemicals, flooring compounds, bitumen and coal tar-based products, sealants and adhesives, protective and anti-corrosive coatings; powder coatings; GI and automotive coatings; lacquers; and various sanitization products. The company was formerly known as British Paints (India) Limited and changed its name to Berger Paints India Limited in December 1983. Berger Paints India Limited was incorporated in 1923 and is based in Kolkata, India. Berger Paints India Limited is a subsidiary of U.K. Paints India Private Limited.

How the Company Makes Money

Berger Paints India Limited primarily makes money by selling paint and coating products, with revenue largely driven by volumes sold through its distribution and retail network. Key revenue streams include: (1) Decorative/architectural coatings: sales of interior and exterior emulsions, distempers, enamels, primers, putty, and adjacent solutions such as waterproofing and construction chemicals-like offerings (where applicable within its product lines). These products are typically sold via dealers, distributors, and retail paint stores, including tinting systems that enable on-demand color mixing; revenue is recognized from product sales to the channel and/or customers depending on the transaction structure. Demand in this segment is influenced by housing, renovation/repainting cycles, consumer preferences (premiumization), and contractor/painter adoption. (2) Industrial coatings: sales of specialized coatings used for applications such as automotive, general industrial, protective, and other industrial uses (to the extent offered within Berger’s portfolio). This revenue is typically earned by supplying OEMs, industrial customers, and institutional buyers, often involving product qualification, technical support, and sometimes longer sales cycles than decorative paints. (3) Ancillary/other operating income factors: to the extent disclosed in company financials, earnings can also be supported by product mix (premium products generally carrying higher margins), brand-led pricing power, operational efficiencies in manufacturing and procurement, and distribution reach that drives throughput. Significant partnerships or specific contractual arrangements contributing to earnings: null.

Berger Paints India Limited Financial Statement Overview

Summary

Berger Paints demonstrates strong financial health with consistent revenue growth, robust profit margins, and stable balance sheet metrics. While cash flow generation has seen some decline, the overall financial stability and profitability provide a solid foundation for future growth.

Income Statement

Berger Paints has shown a consistent revenue growth with a 3.99% increase in the latest year. The gross profit margin is strong at 41.42%, and the net profit margin is healthy at 10.23%. EBIT and EBITDA margins are impressive at 34.37% and 16.08% respectively, indicating efficient cost management and strong operational performance.

Balance Sheet

The company maintains a solid equity position with an equity ratio of 67.41%. The debt-to-equity ratio is low at 0.11, suggesting prudent leverage management. ROE is strong at 19.18%, reflecting effective use of equity to generate profits. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Free cash flow has decreased year-over-year, indicating potential cash generation challenges. However, the operating cash flow to net income ratio is robust at 1.07, showing good cash conversion from earnings. Despite fluctuations, the cash flow position remains satisfactory.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	117.07B	115.45B	111.99B	105.68B	87.62B	68.18B
Gross Profit	43.89B	46.20B	43.89B	37.05B	32.21B	28.59B
EBITDA	16.10B	15.23B	15.51B	14.37B	12.86B	11.58B
Net Income	10.78B	11.80B	11.68B	8.59B	8.33B	7.20B
Balance Sheet
Total Assets	94.57B	91.32B	83.69B	79.67B	72.13B	59.21B
Cash, Cash Equivalents and Short-Term Investments	7.89B	8.34B	5.56B	2.93B	3.95B	6.43B
Total Debt	6.97B	6.70B	7.53B	11.89B	10.14B	6.34B
Total Liabilities	31.65B	29.65B	29.79B	34.65B	32.78B	25.37B
Stockholders Equity	62.79B	61.54B	53.79B	44.94B	39.27B	33.77B
Cash Flow
Free Cash Flow	4.56B	8.40B	13.16B	2.28B	-2.08B	6.10B
Operating Cash Flow	6.47B	12.69B	15.91B	9.76B	5.67B	7.96B
Investing Cash Flow	-1.69B	-6.50B	-3.98B	-6.00B	-5.21B	-4.57B
Financing Cash Flow	-5.03B	-6.06B	-10.69B	-3.63B	-781.30M	-2.82B

Berger Paints India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 528.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BERGEPAINT, the sentiment is Negative. The current price of 528.35 is above the 20-day moving average (MA) of 447.75, above the 50-day MA of 478.46, and below the 200-day MA of 533.41, indicating a bearish trend. The MACD of -15.85 indicates Positive momentum. The RSI at 21.50 is Positive, neither overbought nor oversold. The STOCH value of 12.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BERGEPAINT.

Berger Paints India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KANSAINER	75 Outperform	₹147.80B	39.21	―	1.11%	1.06%	83.53%
AKZOINDIA	69 Neutral	₹130.73B	48.69	―	3.04%	-3.03%	357.65%
BERGEPAINT	67 Neutral	₹475.71B	57.68	―	0.70%	3.90%	-5.85%
INDIGOPNTS	65 Neutral	₹37.53B	37.48	―	0.30%	0.14%	2.95%
SIRCA	64 Neutral	₹23.23B	45.97	―	0.30%	28.27%	23.68%
ASIANPAINT	63 Neutral	₹2.11T	62.63	―	0.89%	-1.30%	-14.72%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Berger Paints India Limited Corporate Events

Berger Paints Alerts Shareholders to Special Window for Demat of Physical Securities

Berger Paints India Limited has notified stock exchanges that it has published a newspaper notice informing shareholders about a special window for re-lodgement for transfer and dematerialisation of physical securities, in line with a recent SEBI circular. By publicising this window through English and Bengali newspapers, the company aims to ensure wider shareholder awareness and compliance, supporting the broader regulatory push toward dematerialised holdings and smoother securities transfer processes.

The initiative is expected to streamline share transfer and demat procedures for investors who still hold physical certificates, potentially reducing operational frictions for the company’s registrar and improving record-keeping quality. This move also aligns Berger Paints with evolving securities market regulations, reinforcing governance standards and offering shareholders an opportunity to regularise their holdings under the latest SEBI framework.

Berger Paints Publishes Audio of Investor Presentation on December Quarter Results

Berger Paints India Limited has notified stock exchanges that the audio recording of its investor presentation on the financial results for the quarter and nine months ended 31 December 2025, held on 5 February 2026, is now available on the company’s website. The disclosure, made under SEBI’s listing regulations, enhances transparency and accessibility for investors and analysts by providing direct access to management’s commentary on recent financial performance and outlook, reinforcing the company’s compliance and investor communication standards.