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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