BERGEPAINT - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.3
| Stock Code | BERGEPAINT | Market Cap | 54,860 Cr. | Current Price | 470 ₹ | High / Low | 605 ₹ |
| Stock P/E | 51.2 | Book Value | 49.0 ₹ | Dividend Yield | 0.81 % | ROCE | 24.9 % |
| ROE | 20.0 % | Face Value | 1.00 ₹ | DMA 50 | 457 ₹ | DMA 200 | 497 ₹ |
| Chg in FII Hold | -0.57 % | Chg in DII Hold | 0.63 % | PAT Qtr | 336 Cr. | PAT Prev Qtr | 176 Cr. |
| RSI | 58.5 | MACD | 8.34 | Volume | 1,78,575 | Avg Vol 1Wk | 1,61,054 |
| Low price | 391 ₹ | High price | 605 ₹ | PEG Ratio | 3.96 | Debt to equity | 0.08 |
| 52w Index | 37.0 % | Qtr Profit Var | 9.90 % | EPS | 8.62 ₹ | Industry PE | 36.0 |
Analysis: Berger Paints (BERGEPAINT) demonstrates strong fundamentals with high ROCE (24.9%) and ROE (20%), supported by low debt-to-equity (0.08). The current price of ₹470 is close to the 50 DMA (₹457), offering a potential entry zone. RSI at 58.5 suggests neutral momentum, while MACD is positive, indicating bullish signals. Valuation remains expensive with a P/E of 51.2 compared to industry average of 36, but recent profit growth and volume strength favor short-term upside.
Optimal Entry Price: ₹455–₹460 (near 50 DMA support).
Exit Strategy (if already holding): Target ₹500–₹510 resistance zone, with a stop-loss below ₹450.
✅ Positive
- Strong ROCE (24.9%) and ROE (20%) show efficient capital use.
- Low debt-to-equity ratio (0.08) ensures financial stability.
- Quarterly PAT growth from ₹176 Cr. to ₹336 Cr. highlights earnings momentum.
- Trading volumes above weekly average, indicating active market interest.
⚠️ Limitation
- High P/E (51.2) compared to industry average (36.0), making valuation stretched.
- PEG ratio of 3.96 suggests expensive growth prospects.
- FII holding decreased (-0.57%), showing reduced foreign investor confidence.
📉 Company Negative News
- Decline in FII holdings signals cautious outlook from foreign investors.
- High valuation may cap near-term upside potential.
📈 Company Positive News
- Strong quarterly profit growth and improved margins.
- DII holdings increased (+0.63%), reflecting domestic institutional confidence.
- Stock trading above 50 DMA, showing short-term strength.
🏭 Industry
- Paint industry remains resilient with steady demand from housing and infrastructure.
- Industry P/E at 36.0 indicates moderate valuation compared to Berger Paints.
🔎 Conclusion
Berger Paints is a fundamentally strong candidate for swing trading with bullish technical signals. Entry near ₹455–₹460 is favorable, with profit booking around ₹500–₹510. While valuations are high, short-term momentum and earnings growth support a positive outlook. Risk management is essential due to premium valuation and reduced FII interest.