Berger Paints India Limited (BERGEPAINT) AI Stock Analysis

• Market Cap: ₹507.08B
• Dividend Yield: 0.7%
• Average Volume (3M): 16.36K
• Price to Earnings (P/E): 57.7
• Beta (1Y): 0.86
• 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: ₹472.00 ▼(-10.67% 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

Low leverage and strong equity base

A high equity ratio and very low debt-to-equity provide durable financial flexibility, lowering default risk and enabling capital allocation for capex, network expansion or buybacks without stressing cash. Strong ROE (19.18%) shows effective use of shareholders' capital over cycles.

Robust margins and operational efficiency

Sustained high gross and operating margins indicate pricing power and cost control in coatings manufacturing. Such margin durability supports reinvestment and resilience to input cost swings, enabling consistent profitability across repaint cycles and product mix shifts.

Broad distribution and diversified product portfolio

A wide retail/tinting footprint plus decorative and industrial product lines creates recurring demand, strong channel relationships and cross-sell opportunities. This structural reach boosts volume stability, speeds new product rollouts, and supports premiumization strategies over time.

Negative Factors

Declining free cash flow

A year-over-year fall in free cash flow is a durable concern: it can constrain organic investment, dividend capacity or acquisitions. Even with solid cash conversion, persistent FCF decline reduces the buffer for cyclical downturns and limits strategic flexibility.

Modest top-line growth

Low single-digit revenue growth signals limited organic expansion versus potential market opportunity. Over the medium term this can cap operating leverage benefits, making margins reliant on price and mix rather than volume expansion, and raising dependence on premiumization.

Negative EPS growth

A decline in EPS indicates profitability pressure despite healthy margins; it may reflect rising costs, mix shifts or non-operating impacts. Continued EPS contraction would erode investor returns and could signal underlying operational or demand weaknesses that are not yet transitory.

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 generates revenue primarily through the sale of its extensive range of paint products, which includes decorative paints, industrial coatings, and specialty products. The company's revenue model is driven by both retail and institutional sales, with a significant portion coming from the construction and real estate sectors. Key revenue streams include direct sales through a robust network of dealers and distributors, as well as partnerships with large construction firms and real estate developers. Additionally, Berger Paints invests in marketing and brand development to enhance customer loyalty and market penetration, which contributes to its earnings. The company also benefits from economies of scale in manufacturing and distribution, allowing it to maintain competitive pricing while ensuring profitability.

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	116.54B	115.45B	111.99B	105.68B	87.62B	68.18B
Gross Profit	47.13B	46.20B	43.89B	37.05B	32.21B	28.59B
EBITDA	16.65B	15.23B	15.51B	14.37B	12.86B	11.58B
Net Income	11.41B	11.80B	11.68B	8.59B	8.33B	7.20B
Balance Sheet
Total Assets	0.00	91.32B	83.69B	79.67B	72.13B	59.21B
Cash, Cash Equivalents and Short-Term Investments	8.35B	8.34B	5.56B	2.93B	3.95B	6.43B
Total Debt	0.00	6.70B	7.53B	11.89B	10.14B	6.34B
Total Liabilities	-61.67B	29.65B	29.79B	34.65B	32.78B	25.37B
Stockholders Equity	61.67B	61.54B	53.79B	44.94B	39.27B	33.77B
Cash Flow
Free Cash Flow	0.00	8.40B	13.16B	2.28B	-2.08B	6.10B
Operating Cash Flow	0.00	12.69B	15.91B	9.76B	5.67B	7.96B
Investing Cash Flow	0.00	-6.50B	-3.98B	-6.00B	-5.21B	-4.57B
Financing Cash Flow	0.00	-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: Negative
• RSI: Positive
• STOCH: Neutral

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 460.83, above the 50-day MA of 494.11, and below the 200-day MA of 537.81, indicating a bearish trend. The MACD of -12.24 indicates Negative momentum. The RSI at 26.19 is Positive, neither overbought nor oversold. The STOCH value of 35.49 is Neutral, 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	₹157.38B	39.21	―	1.11%	1.06%	83.53%
INDIGOPNTS	74 Outperform	₹43.11B	37.48	―	0.30%	0.14%	2.95%
AKZOINDIA	69 Neutral	₹129.22B	48.69	―	3.04%	-3.03%	357.65%
BERGEPAINT	67 Neutral	₹507.08B	57.68	―	0.70%	3.90%	-5.85%
SIRCA	64 Neutral	₹25.77B	45.97	―	0.30%	28.27%	23.68%
ASIANPAINT	63 Neutral	₹2.19T	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.