BERGEPAINT - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.1
| Stock Code | BERGEPAINT | Market Cap | 64,349 Cr. | Current Price | 552 ₹ | High / Low | 605 ₹ |
| Stock P/E | 56.8 | Book Value | 54.4 ₹ | Dividend Yield | 0.69 % | ROCE | 23.6 % |
| ROE | 18.9 % | Face Value | 1.00 ₹ | DMA 50 | 495 ₹ | DMA 200 | 500 ₹ |
| Chg in FII Hold | -0.57 % | Chg in DII Hold | 0.63 % | PAT Qtr | 300 Cr. | PAT Prev Qtr | 336 Cr. |
| RSI | 66.9 | MACD | 8.24 | Volume | 80,48,692 | Avg Vol 1Wk | 19,09,158 |
| Low price | 391 ₹ | High price | 605 ₹ | PEG Ratio | 5.20 | Debt to equity | 0.07 |
| 52w Index | 75.0 % | Qtr Profit Var | 26.4 % | EPS | 9.40 ₹ | Industry PE | 35.5 |
BERGEPAINT demonstrates strong fundamentals with high ROCE and ROE, low debt-to-equity, and robust trading volumes. Technical indicators such as RSI (66.9) and MACD (8.24) show bullish momentum, though the RSI suggests the stock is nearing overbought levels. Valuation appears stretched with a P/E of 56.8 compared to the industry average of 35.5, and a PEG ratio of 5.20. Despite short-term profit decline, the overall trend remains positive for swing trading.
Optimal Entry Price: 500–510 ₹ (near DMA 200 support)
Exit Strategy: If already holding, consider exiting around 590–600 ₹ resistance or if RSI crosses 70.
✅ Positive
- 📈 Strong ROCE of 23.6% and ROE of 18.9%.
- 💰 Very low debt-to-equity ratio of 0.07.
- 📊 High trading volume (80 lakh+) compared to weekly average, showing strong interest.
- 📉 Support near DMA 200 at 500 ₹ provides a safe entry zone.
⚠️ Limitation
- 📌 Elevated P/E ratio of 56.8 vs industry average of 35.5.
- 📌 PEG ratio of 5.20 suggests expensive valuation relative to growth.
- 📌 PAT declined from 336 Cr. to 300 Cr. in the latest quarter.
📰 Company Negative News
- 📉 Quarterly profit decline indicates margin pressure.
- 📉 Reduction in FII holding (-0.57%).
🌟 Company Positive News
- 📈 Increase in DII holding (+0.63%).
- 📈 Strong brand presence in decorative paints sector.
- 📈 Consistent dividend payout with yield of 0.69%.
🏭 Industry
- 🎨 Paint industry benefits from housing and infrastructure growth.
- 📌 Industry P/E at 35.5, showing sector is moderately valued compared to BERGEPAINT.
📌 Conclusion
BERGEPAINT is a fundamentally strong company with bullish technical indicators, making it a suitable candidate for swing trading. Entry near 500–510 ₹ offers favorable risk-reward, while exit near 590–600 ₹ is optimal. Traders should monitor RSI and quarterly earnings closely for potential reversals.