BERGEPAINT - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.2
| Stock Code | BERGEPAINT | Market Cap | 47,742 Cr. | Current Price | 409 ₹ | High / Low | 605 ₹ |
| Stock P/E | 44.6 | Book Value | 49.0 ₹ | Dividend Yield | 0.93 % | ROCE | 24.9 % |
| ROE | 20.0 % | Face Value | 1.00 ₹ | DMA 50 | 463 ₹ | DMA 200 | 512 ₹ |
| Chg in FII Hold | -0.10 % | Chg in DII Hold | 0.37 % | PAT Qtr | 336 Cr. | PAT Prev Qtr | 176 Cr. |
| RSI | 28.0 | MACD | -16.8 | Volume | 3,10,205 | Avg Vol 1Wk | 4,84,733 |
| Low price | 391 ₹ | High price | 605 ₹ | PEG Ratio | 3.45 | Debt to equity | 0.08 |
| 52w Index | 8.58 % | Qtr Profit Var | 9.90 % | EPS | 8.62 ₹ | Industry PE | 30.9 |
Analysis: Berger Paints (BERGEPAINT) shows strong fundamentals with high ROCE (24.9%) and ROE (20%), low debt-to-equity (0.08), and consistent profitability. However, the stock currently trades at ₹409, well below its 50 DMA (₹463) and 200 DMA (₹512), indicating bearish momentum. RSI at 28 suggests oversold conditions, which could present a short-term rebound opportunity. MACD remains negative, confirming weak momentum. Volume is lower than average, showing limited trader interest. The high P/E (44.6 vs industry 30.9) and PEG ratio (3.45) suggest overvaluation.
Optimal Entry Price: Around ₹395–₹405, close to recent lows, as RSI indicates oversold territory.
Exit Strategy (if already holding): Consider exiting near ₹460–₹470, where resistance aligns with the 50 DMA. If momentum fails to recover, a stop-loss near ₹385 is advisable.
✅ Positive
- Strong ROCE and ROE indicate efficient capital use.
- Low debt-to-equity ratio (0.08) ensures financial stability.
- Quarterly PAT growth from ₹176 Cr. to ₹336 Cr. shows earnings momentum.
- Dividend yield of 0.93% adds shareholder value.
⚠️ Limitation
- High valuation compared to industry peers (P/E 44.6 vs 30.9).
- Weak technicals: price below 50 & 200 DMA, negative MACD.
- Low trading volume compared to average, reducing liquidity for swing trades.
📰 Company Negative News
- Decline in FII holdings (-0.10%) suggests reduced foreign investor confidence.
- Stock has corrected significantly from its 52-week high of ₹605.
🌟 Company Positive News
- Strong quarterly profit growth (+9.9% variation).
- DII holdings increased (+0.37%), showing domestic institutional support.
🏭 Industry
- Paints sector remains resilient with steady demand in housing and infrastructure.
- Industry P/E at 30.9 indicates moderate valuation compared to Berger’s premium pricing.
📌 Conclusion
Berger Paints is fundamentally strong but technically weak at present. For swing trading, it offers a potential rebound opportunity due to oversold RSI. Entry near ₹395–₹405 is favorable, with exit around ₹460–₹470. Caution is advised due to high valuation and weak momentum indicators.