Best Stocks to Buy in India for Short term – Berger Paints India Ltd

Our 45th company in the Series of Best Stocks to Buy in India for Short term 2023 is Berger Paints India Ltd.

This company is good for investing purpose or not ?

Let’s start with the Company profile

Company Profile :

Berger Paints India Limited is engaged in the manufacture of paints and varnishes, enamels or lacquers.

Now Let’s check the important fundamental figures of this company. This is a large cap company with Market Cap ₹55,228 cr. We can check more fundamental details below in depth:

Company Fundamental Detail :

PE Ratio: 66.32

Sector PE Ratio: 13.21

PE Ratio of this company is high than Sector’s PE. So it’s a Below Average PE than the peers of this company.

PB Ratio : 14.04

Sector PB Ratio : 2.54

PB Ratio of this company is high than Sector’s PB ratio. So it’s Average PB than the peers of this company.

Dividend Yield : 0.55%

Sector Dividend Yield : 2.31%

Dividend Yield of this company is low than Sector. Dividend of this is Below Average than the peers of this company.

ROE: 19.92%

ROCE: 25.49%

ROE (Return on equity) and ROCE (Return on capital equity) is Good.

According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:

Company Financial Detail


We should check now liabilities of company also in the below table

Total Current & Non Current Liabilities

2022  2021 2020  2019

Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2022 ,Company have 3,277.33 Cr. debt.

Let’s check the Free Cash flow of the company

Free Cash flow

2022  2021 2020  2019

Debt Level: 509480’s net debt to equity ratio (32.8%) is considered satisfactory.

Reducing Debt: Berger Paints debt to equity ratio has increased from 38.6% to 39.8% over the past 5 years.

Debt Coverage: Berger Paints debt is well covered by operating cash flow (32.8%).

Interest Coverage: Berger Paints interest payments on its debt are well covered by EBIT (19.3x coverage).

Share Holding Pattern

Promotor HoldingForeign Institution
Mutual Fund
Other Domestic InstitutionsRetail & Others
Jun 2022 75.00%11.11%1.12% 1.80%10.96%
Mar 2022 75.00%11.13% 1.44% 1.73%10.71%
Dec 2021 75.00%10.03%1.01%2.56% 10.41%
Sep 2021 75.00%11.29%0.86%2.56%10.32%

Above table showing there is no big change in Promotor Holding which is 75.00% in June 2022. FIIs invested in June 2022 with 11.11% and retail investor is 10.96% .

Investment Checklist for Berger Paints India Ltd.

  • The company is currently profitable
  • Dividend of 0.54% is not well covered
  • Earnings are forecast to grow by an average of 17.3% per year for the next 3 years
  • Debt level is low and not considered a risk
  • Share price has been stable over the past 3 months
  • The company’s earnings are high quality
  • Profit margins decreased but not substantially
  • They have sufficient analyst coverage
  • No significant insider selling over the past 3 months
  • Shareholders have not been meaningfully diluted in the past year or recently listed
  • Revenue is meaningful (₹103B)
  • Market cap is meaningful (₹555B)

According to its historical performance we can predict stock target.

Entry Buying Zone : Premium members can see only

Target: Premium members can see only

Time Horizon:Premium members can see only

Risk Profile: Premium members can see only

Hope you liked Our 45th company in the Series of Best stocks to buy in India for short term 2023. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.

Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss.

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