⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BERGEPAINT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | BERGEPAINT | Market Cap | 48,376 Cr. | Current Price | 415 ₹ | High / Low | 605 ₹ |
| Stock P/E | 45.2 | Book Value | 49.0 ₹ | Dividend Yield | 0.92 % | ROCE | 24.9 % |
| ROE | 20.0 % | Face Value | 1.00 ₹ | DMA 50 | 465 ₹ | DMA 200 | 513 ₹ |
| Chg in FII Hold | -0.10 % | Chg in DII Hold | 0.37 % | PAT Qtr | 336 Cr. | PAT Prev Qtr | 176 Cr. |
| RSI | 30.2 | MACD | -16.6 | Volume | 3,18,827 | Avg Vol 1Wk | 4,99,950 |
| Low price | 391 ₹ | High price | 605 ₹ | PEG Ratio | 3.49 | Debt to equity | 0.08 |
| 52w Index | 11.2 % | Qtr Profit Var | 9.90 % | EPS | 8.62 ₹ | Industry PE | 32.2 |
📊 Financials
- Revenue Growth: Stable with consistent demand in decorative paints
- Profit Margins: Strong, PAT jumped from 176 Cr. to 336 Cr. QoQ
- Debt Ratios: Very low (Debt-to-Equity 0.08), financially sound
- Cash Flows: Healthy, supported by strong operating margins
- Return Metrics: ROE 20%, ROCE 24.9% — excellent efficiency
💹 Valuation
- P/E Ratio: 45.2 (Premium vs Industry PE 32.2)
- P/B Ratio: ~8.5 (High, reflects brand strength)
- PEG Ratio: 3.49 (Overvalued relative to growth)
- Intrinsic Value: Current price (415 ₹) below DMA 50 (465 ₹) & DMA 200 (513 ₹), suggesting weakness
🏢 Business Model & Competitive Advantage
- Strong brand presence in decorative paints
- Wide distribution network across India
- Low debt ensures resilience
- Competitive edge in premium & niche paint segments
📈 Entry Zone Recommendation
- Entry Zone: 390–420 ₹ (near RSI oversold at 30.2)
- Long-Term Holding: Attractive for investors seeking stable returns, but valuation is stretched
✅ Positive
- Strong ROE & ROCE
- Low debt, high financial stability
- Quarterly profit growth nearly doubled
⚠️ Limitation
- High P/E compared to industry
- PEG ratio indicates overvaluation
- Weak technicals (below DMA 50 & 200)
📉 Company Negative News
- FII holding decreased (-0.10%)
- Stock under pressure due to weak technical indicators
📈 Company Positive News
- DII holding increased (+0.37%)
- Strong quarterly profit growth
🏭 Industry
- Paint industry growing steadily with housing & infrastructure demand
- Industry PE at 32.2, showing sector optimism
🔎 Conclusion
Berge Paints is a fundamentally strong company with excellent return ratios and low debt. However, valuations are stretched compared to industry peers. Current price is near an attractive entry zone (390–420 ₹), supported by oversold RSI. Long-term investors can accumulate gradually, but should be cautious of premium valuations.