Paint Industry has been among the top growing industries. It has likely faced a decline of 2% in Q2 FY25. Thus, each company in this industry is facing some amount of pressure on them. ICICI Securities has presented its reports on Berger Paint’s performance for Q2 FY25 suggesting to REDUCE. Let us have a look at these potential differences below.
Why Paint Industry Witnessed A Fall In Q2 FY25?
Berger Paints announced an average performance in this quarter. There was a growth of 3.6% YoY. However, there was a fall in EBITDA. It was reduced by 147 bps YoY to 15.6%. While the company invested a considerable amount in urban markets. While they also added a new inventory. It includes 2,200+ retail touchpoints and 2,000+ colours. The company states that its premium segment has also witnessed some improvements. While the quarter end also resulted in gaining back the demand.
ICICI Securities has advised the company to maintain REDUCE with a DCF-based revised TP of INR 470. According to them, its the time to consider this as the entry of Grasim has surely impacted the industry. Thus, the profit pool will have another member of the share. Thus, it can impact the profitability of the companies. However, this is crucial to note that these investment tips are from the brokers or experts, not the website.
If we talk about the company’s share price, it has a share price of Rs. 525.15 per share. It opened today at Rs. 525.15 per share. While it closed at Rs. 525 per share. The company has a market cap of 598.52 B. The experts also recommended selling this share at the moment. It gained 2.29% of growth today. While it fell on a monthly basis by 9.95%.On a yearly basis as well, the company had a fall of 7.73%. In the past five years, the company grew by 29.83%.
The paint industry has been growing over the years. However, the quarter was not good for the industry. The main reason behind this fall was the rainy season and the increased amount of heat and heatwaves in other areas. The season was not very fit for the painting. However, the demand increased again by the end of Sep 2024. It points out the recovery of the industry. However, the Q3 reports will clear it further. Berger Paints is looking for further expansion at the moment. We hope you get enough details about the Berger paints above. Stay tuned for more information on our website.