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Berger Paints Sheds 2.74%—Temporary Setback or Start of Sector Rotation?


Updated: July 15, 2025 09:05

Image Source : The Economic Times
Berger Paints India Ltd fell 2.74% on July 14, closing at Rs 556.85 and becoming one of the leading losers on the Nifty Midcap 150 index. This fall follows a general market caution and profit-selling in consumer stocks even when the financials of the company are strong.
 
Key Highlights:
 
- Share price dropped from Rs 572.10 to Rs 556.85, a sharp intraday fall.

- The dip is continuing a steady uptrend in the fourth quarter in which the stock has risen over 17%.

- August 12, 2025, is scheduled for Berger Paints' Annual General Meeting with earlier announced dividend and book closure dates this month.
 
Financial Summary:

- March 2025 quarterly revenue was Rs 2,704.03 crore, an increase from Rs 2,520.28 crore YoY.

- Net profit rose to Rs 253.57 crore, compared to Rs 190.60 crore in March 2024.

- EPS increased to Rs 2.25 from Rs 1.91 YoY, reflecting operating efficiency.
 
Market Sentiment:

- Investor sentiment was cautious even though fundamentals were good, due to sector rotation and valuation concerns.

- ROE fell to 19.18% vs 21.70% YoY, which can fuel short-term bearish expectations.

- Debt-to-equity ratio rose to 0.11 from 0.04, but still in conservative levels.
 
Expectations:

- The long-term outlook is good, analysts say, with solid margins and brand strength.

- Short-term volatility will persist until AGM guidance and Q2 guidance offer more clarity.
 
Sources: Moneycontrol, TradingView, Economic Times, Indian Express, Business Standard.

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