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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 509480 | NSE: BERGEPAINT

Berger Paints India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:24 pm

Market Cap 54,302 Cr.
Current Price 466
High / Low630/439
Stock P/E47.4
Book Value 48.0
Dividend Yield0.75 %
ROCE27.5 %
ROE23.5 %
Face Value 1.00
PEG Ratio4.14

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Berger Paints India Ltd

Competitors of Berger Paints India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sirca Paints India Ltd 1,766 Cr. 322444/28238.0 59.10.47 %24.0 %17.9 % 10.0
Shalimar Paints Ltd 826 Cr. 98.7226/97.0 41.40.00 %13.0 %21.2 % 2.00
Kansai Nerolac Paints Ltd 20,706 Cr. 255357/25233.9 69.80.98 %16.6 %12.8 % 1.00
Berger Paints India Ltd 54,302 Cr. 466630/43947.4 48.00.75 %27.5 %23.5 % 1.00
Akzo Nobel India Ltd 16,538 Cr. 3,6314,674/2,26538.0 3132.07 %42.3 %32.3 % 10.0
Industry Average54,515.50 Cr1,200.1241.38119.880.94%26.82%23.18%4.17

All Competitor Stocks of Berger Paints India Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,1182,0261,7982,2252,5512,1882,7602,6712,6942,4443,0302,7672,882
Expenses1,7031,6921,5611,8712,1591,8412,3552,3072,3442,0972,4732,2942,402
Operating Profit415334238354392346405364350347557474480
OPM %20%17%13%16%15%16%15%14%13%14%18%17%17%
Other Income17151713152417161315171920
Interest9121013141516243029202120
Depreciation53545556566063626474788383
Profit before tax370283190298337296342293269258476389398
Tax %26%26%26%27%25%26%26%25%25%28%25%25%25%
Net Profit275209140219253220254220201186355292300
EPS in Rs2.361.791.211.882.171.892.171.881.721.593.042.502.57

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,8463,2273,7324,1704,2234,5525,1666,0626,3666,8188,76210,56811,122
Expenses2,5432,8563,3003,6593,5783,8334,3595,1275,3135,6357,4319,0909,265
Operating Profit3033714315116457198079351,0531,1821,3311,4781,857
OPM %11%12%12%12%15%16%16%15%17%17%15%14%17%
Other Income313136364010846606951684872
Interest32384750271625474744519990
Depreciation4757719299108124182191211227264318
Profit before tax2543083504045597037057658839791,1221,1621,521
Tax %29%29%29%34%34%33%35%35%26%26%26%26%
Net Profit1802182492653714744614946567208338601,133
EPS in Rs1.551.882.142.273.184.073.954.245.646.177.147.379.70
Dividend Payout %27%29%31%33%31%36%38%37%32%38%36%36%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)21.11%14.22%6.43%40.00%27.76%-2.74%7.16%32.79%9.76%15.69%3.24%
Change in YoY Net Profit Growth (%)0.00%-6.89%-7.79%33.57%-12.24%-30.51%9.90%25.64%-23.04%5.94%-12.45%

Berger Paints India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:12%
5 Years:13%
3 Years:18%
TTM:3%
Compounded Profit Growth
10 Years:17%
5 Years:19%
3 Years:18%
TTM:11%
Stock Price CAGR
10 Years:16%
5 Years:3%
3 Years:-10%
1 Year:-18%
Return on Equity
10 Years:23%
5 Years:23%
3 Years:22%
Last Year:24%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:36 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital6969696997979797979797117117
Reserves8841,0511,1911,4931,8042,0972,3472,5633,2803,8304,3975,2625,474
Borrowings5506246103544064227537676341,0141,189753797
Other Liabilities6838518469601,1321,3261,3601,4721,9072,2712,2832,2362,493
Total Liabilities2,1862,5952,7162,8773,4403,9434,5574,9005,9187,2117,9668,3688,881
Fixed Assets5998649319631,1361,2671,5831,9162,0442,1873,3323,5003,490
CWIP172133100516297170178107606111189228
Investments1191134348472333395315356234183255258
Other Assets1,4041,5071,5501,5151,7692,2452,4092,4903,4114,1854,3414,4244,906
Total Assets2,1862,5952,7162,8773,4403,9434,5574,9005,9187,2117,9668,3688,881

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1203104145953944226117257965669761,591
Cash from Investing Activity +-203-301-184-259-308-183-379-223-457-521-600-398
Cash from Financing Activity +128-52-198-368-82-200-259-479-282-78-363-1,069
Net Cash Flow45-4332-32438-272257-3313124

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow303.00-179.00-193.00-99.00291.00313.00385.00182.00-766.00-633.000.000.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days474847474649404155444342
Inventory Days127122104108153140138142174178142134
Days Payable80958199124133112118161139108103
Cash Conversion Cycle937470567556676567837773
Working Capital Days573948354449484758646056
ROCE %25%24%25%30%31%29%27%28%27%26%24%28%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.99%74.99%74.99%74.99%74.99%75.00%75.00%75.00%75.00%74.99%74.99%74.99%
FIIs11.22%11.30%11.28%11.03%11.13%11.11%10.64%10.83%10.89%10.68%10.66%7.51%
DIIs3.91%3.57%3.41%3.57%3.16%2.90%3.47%3.75%4.06%4.67%5.17%7.57%
Public9.88%10.14%10.32%10.41%10.71%10.98%10.90%10.42%10.05%9.65%9.17%9.93%
No. of Shareholders2,60,6523,16,1133,53,8213,84,6694,04,9574,29,0534,28,4483,93,9703,99,7143,92,6563,71,4114,24,374

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
UTI Flexi Cap Fund5,806,5221.43352.28533,6492024-11-20988.08%
ICICI Prudential Nifty 100 Low Volatility 30 ETF1,193,6982.7272.42533,6492024-11-20123.69%
Nippon India ETF Nifty Next 50 Junior BeES710,0110.9643.08533,6492024-11-2033.05%
ICICI Prudential Nifty Next 50 Index Fund665,0970.9640.35533,6492024-11-2024.63%
UTI Nifty Next 50 Index Fund533,6490.9632.38533,6492024-11-200%
UTI Unit Linked Insurance Plan (ULIP) - Fifteen Year Plan499,2200.5730.29533,6492024-11-20-6.45%
UTI Unit Linked Insurance Plan (ULIP) - Ten Year Plan499,2200.5730.29533,6492024-11-20-6.45%
SBI Nifty Next 50 ETF352,3830.9621.38533,6492024-11-20-33.97%
UTI Nifty Next 50 Exchange Traded Fund284,6870.9617.27533,6492024-11-20-46.65%
Bandhan Nifty100 Low Volatility 30 Index Fund192,5932.7311.68533,6492024-11-20-63.91%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)10.028.868.587.416.76
Diluted EPS (Rs.)10.028.868.577.416.75
Cash EPS (Rs.)12.5211.7110.879.648.81
Book Value[Excl.RevalReserv]/Share (Rs.)46.2346.3540.5034.8427.46
Book Value[Incl.RevalReserv]/Share (Rs.)46.2346.3540.5034.8427.46
Revenue From Operations / Share (Rs.)96.06108.7990.2170.1965.55
PBDIT / Share (Rs.)16.5115.8414.3712.7611.63
PBIT / Share (Rs.)13.6713.1212.0410.599.66
PBT / Share (Rs.)13.0012.1011.5110.139.18
Net Profit / Share (Rs.)9.688.998.547.476.84
NP After MI And SOA / Share (Rs.)10.028.858.577.416.77
PBDIT Margin (%)17.1814.5615.9218.1817.74
PBIT Margin (%)14.2312.0613.3415.0814.74
PBT Margin (%)13.5311.1212.7614.4314.00
Net Profit Margin (%)10.078.269.4610.6310.43
NP After MI And SOA Margin (%)10.428.139.5010.5510.33
Return on Networth / Equity (%)21.7019.1221.2021.3124.72
Return on Capital Employeed (%)26.5425.5326.8026.5629.34
Return On Assets (%)13.9510.7811.5412.1513.41
Long Term Debt / Equity (X)0.080.000.000.050.09
Total Debt / Equity (X)0.140.170.170.110.20
Asset Turnover Ratio (%)1.371.301.231.171.31
Current Ratio (X)1.831.401.421.711.52
Quick Ratio (X)0.900.620.610.920.76
Inventory Turnover Ratio (X)2.492.362.392.202.42
Dividend Payout Ratio (NP) (%)0.0035.0332.654.0456.10
Dividend Payout Ratio (CP) (%)0.0026.8025.673.1343.47
Earning Retention Ratio (%)0.0064.9767.3595.9643.90
Cash Earning Retention Ratio (%)0.0073.2074.3396.8756.53
Interest Coverage Ratio (X)24.6015.5127.5228.1124.01
Interest Coverage Ratio (Post Tax) (X)15.439.8017.3517.4515.12
Enterprise Value (Cr.)67101.5257008.3068333.7274221.6748630.56
EV / Net Operating Revenue (X)5.995.397.8010.897.64
EV / EBITDA (X)34.8637.0548.9659.8843.05
MarketCap / Net Operating Revenue (X)5.965.347.7610.897.59
Retention Ratios (%)0.0064.9667.3495.9543.89
Price / BV (X)12.4212.5717.3121.9918.16
Price / Net Operating Revenue (X)5.965.347.7610.897.59
EarningsYield0.010.010.010.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Berger Paints India Ltd as of November 21, 2024 is: 538.68

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Berger Paints India Ltd is Undervalued by 15.60% compared to the current share price 466.00

Intrinsic Value of Berger Paints India Ltd as of November 21, 2024 is: 600.38

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Berger Paints India Ltd is Undervalued by 28.84% compared to the current share price 466.00

Last 5 Year EPS CAGR: 11.45%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 27.00%, which is a positive sign.
  2. The company has higher reserves (2,744.08 cr) compared to borrowings (682.54 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (5.54 cr) and profit (454.85 cr) over the years.
  1. The stock has a high average Working Capital Days of 50.42, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 71.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Berger Paints India Ltd:
    1. Net Profit Margin: 10.07%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 26.54% (Industry Average ROCE: 26.82%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 21.7% (Industry Average ROE: 23.18%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 15.43
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.9
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 47.4 (Industry average Stock P/E: 34.48)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.14
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Berger Paints (India) Ltd. is a Public Limited Listed company incorporated on 17/12/1923 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L51434WB1923PLC004793 and registration number is 004793. Currently Company is involved in the business activities of Manufacture of other chemical products. Company’s Total Operating Revenue is Rs. 7740.93 Cr. and Equity Capital is Rs. 97.13 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Paints/VarnishesBerger House, 129, Park Street, Kolkata West Bengal 700017consumerfeedback@bergerindia.com
http://www.bergerpaints.com
Management
NamePosition Held
Mr. Kuldip Singh DhingraChairman
Mr. Gurbachan Singh DhingraVice Chairman
Mr. Abhijit RoyManaging Director
Ms. Rishma KaurExecutive Director
Mr. Kanwardip Singh DhingraExecutive Director
Mrs. Sonu Halan BhasinIndependent Director
Mr. Naresh GujralIndependent Director
Dr. Anoop Kumar MittalIndependent Director
Mr. Anoop HoonIndependent Director
Mr. Gopal Krishna PillaiIndependent Director
Mr. Subir BoseIndependent Director

FAQ

What is the latest intrinsic value of Berger Paints India Ltd?

The latest intrinsic value of Berger Paints India Ltd as on 21 November 2024 is ₹538.68, which is 15.60% higher than the current market price of ₹466.00.

What is the Market Cap of Berger Paints India Ltd?

The Market Cap of Berger Paints India Ltd is 54,302 Cr..

What is the current Stock Price of Berger Paints India Ltd as on 21 November 2024?

The current stock price of Berger Paints India Ltd as on 21 November 2024 is ₹466.

What is the High / Low of Berger Paints India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Berger Paints India Ltd stocks is 630/439.

What is the Stock P/E of Berger Paints India Ltd?

The Stock P/E of Berger Paints India Ltd is 47.4.

What is the Book Value of Berger Paints India Ltd?

The Book Value of Berger Paints India Ltd is 48.0.

What is the Dividend Yield of Berger Paints India Ltd?

The Dividend Yield of Berger Paints India Ltd is 0.75 %.

What is the ROCE of Berger Paints India Ltd?

The ROCE of Berger Paints India Ltd is 27.5 %.

What is the ROE of Berger Paints India Ltd?

The ROE of Berger Paints India Ltd is 23.5 %.

What is the Face Value of Berger Paints India Ltd?

The Face Value of Berger Paints India Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Berger Paints India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE