Berger Paints posts 60% growth in Q4; Bonus 2:5

Berger Paints India Ltd., a leading paint manufacturer Company, has posted 59.7 per cent jump in consolidated net profit at Rs 92.8 crore for the quarter ended March 31, 2016 as against Rs 58.1 crore in the corresponding quarter of the previous year. Along with result, the company has declared a bonus of shares in the proportion of 2 (Two) bonus shares of Re. 1/- (Rupee One) each for every existing 5 (Five) fully paid-up Ordinary Shares of Re. 1/- (Rupee One) each.

The company’s consolidated revenue has grown by 8.6 per cent at Rs 1129.7 crore in Q4FY16. Its consolidated operating profit (EBITDA) has grown by 31.63 per cent at Rs 159.4 crore along with operating profit margin expanding by 240 bps for the current quarter, i.e. at 14.11 per cent.

For the entire period of FY16, it has reported consolidated net profit growth of 95.52 per cent at Rs 369.8 crore, while its revenue has grown by 7.2 per cent at Rs 4,634 crore. Its consolidated operating profit (EBITDA) has grown by 28.33 per cent at Rs 655.41 crore along with operating profit margin expanding by 232 bps for the current year at 14.14 per cent.

Berger Paints is the second largest player in Indian decorative paint segment, after Asian Paints, with a market share of around 16-17 per cent. The company would be a big beneficiary of the growth and it would prove to be a continuous shift towards being an organised segment.

On the valuation front, it is currently trading at 55.48 times, price to earnings (P/E) ratio per share of Rs 5.33 as on March 31, 2016. Today stock price closed up by Rs 6.8 or 2.35 per cent at Rs 295.70 per share.