Berger Paints has given robust returns to long-term investors, rising nearly 2000 percent in the last 10 years. The stock surged from around Rs 25 in 2009 to Rs 520 in 2019, giving 1,980 percent returns.
To put in perspective, an investment of Rs 10,000 in 2009 would have turned Rs 2 lakhs in 2019. Just in the last 1 year, the stock has risen 60 percent while it has gained 57 percent in 2019.
It hit its 52-week high of Rs 533 on October 31, 2019, and a 52-week low of Rs 284 on February 18, 2019.
The stock has gained the most in 10 years when compared to other stocks from the sector. Asian Paints has risen 948 percent since 2009, Kansai Nerolac has added 828 percent and Shalimar Paints advanced 118 percent.
Berger has outperformed peers in the last one year as well. In the last 1 year, Asian Paints rose 33 percent whereas Kansai Nerolac was up 7 percent and Shalimar Paints added 11 percent.
For Q2, the company reported a 67.1 percent jump in consolidated net profit to Rs 194.66 crore. It had posted a consolidated net profit of Rs 116.46 crore in the year-ago period. Consolidated revenue from operations (excluding GST) in the said quarter stood at Rs 1,598.58 crore, up by 7.2 percent from Rs 1,490.06 crore in the same quarter of last fiscal, the company stated.
According to analysts, the company benefitted from softer crude prices, given its higher exposure to crude derivatives. IDFC Securities has maintained 'outperform' rating on Berger Paints India as the company retains focus on core expertise to drive sustainable growth.
While the flagship domestic decorative business sustained its low teens' volume growth trajectory (leading to double-digit value growth) and decent growth in the non-auto industrial segment continued, the overall performance was dragged by a sharp deceleration in the automotive segment, said Spark Capital in a report.
It added that despite moderation in growth, operating margin improvement was sustained aided by a benign trend of input prices coupled with multiple price hikes affected last year and it expects this trend to continue in the near-term.
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