fundamentally strong stock | Berger paints share price target 2022

Today we are going to see fundamentally strong stock. Generally, what happens in the world people suggest such types of stock in the stock market who has given good returns in the past or stock have at an all-time high. Today I am telling you about fundamentally strong stock this is not my advice I just tell you that you can check this stock for further analysis. In the stock market, there are more than 5500 companies listed so the selection of stock becomes hard So, I found this stock that has good potential to give multi-bagger returns in the future.

Berger paints share price target 2022
Berger Paint Share Price Target

The most important of stock selection in the stock market is the process is fundamental analysis. Always remember You have to select such types of stock that have a fundamentally strong base suppose in a future market crash or bearish zone then your stock has the ability to sustain that crash or bearish zone.

Today stock we have talked about is Berger paints share price target of 2022. Berger paints India’s shares have strong fundamentals. 

Berger Paints balance sheet analysis

The person who Selects stocks by considering companies business model, and balance sheet parameter has a good patience level although their stock price is going down. they do not panic because they know this is short-term fluctuation so no need to panic because the company has good fundamentals.

Let’s see some parameters of the balances sheet of Berger Paints.

The company has maintained good reserves in recent years. In September 2021 company have a 3,364 Cr reserve. Reserves are the most important parameter for any company. Reserve means the company has money in the bank, if any emergency conditions occur then the company solves that problem by using reserves. The company does not have any long-term Borrowing. 

Profit and Loss of Berger paints ltd.

If You see the sales of the company, it has increased year by year.
March 2019 – 6,062
March 2020 – 6,366
March 2021 – 6,818
Figures are in CR. This is a good sign that means the company has in the Growth stages.
Operating profit has also increased in recent years.
March 2019 – 935 Cr
March 2020 – 1,053 Cr
March 2021 – 1,182 Cr
If You See the profit of the company, it has increased year by year.
March 2020 – 658 Cr
March 2021 – 720 Cr 
March 2019 – 494 Cr
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Berger paints share price target 2022

Berger paints company business is all about paint. Berger paint comes in the manufacturing and selling of paints. In some recent years, companies have focused on improving their decorative paints business and also got success in growth. Berger paint company’s almost 80% revenue has come from the decorative paint business. The company had maintained healthy sales during COVID 19.

Berger paints share price trades at 622 Rs in the stock market. If you see, the stock has not performed well last year this stock gave almost neutral returns. Berger paints have traded in consolidating phase since last year. If you saw the Berger paints Stock Price CAGR percent in the last 10 years it was almost 37%.

Berger paints have Given multi-bagger returns to the shareholders in recent years, but last year stock is in the consolidated zone. You read above company is continuously increase their sales, profit. In the paint Segment, Berger’s paint is in 2nd position in India after Asian Paint.

Berger paints share price target 2022 according to me if the stock breaks its all-time high which has 873 Rs then it has potential to reach 4 Digit figure means 1000 Rs.

Investing in Berger paints for the short term is not a fair decision. If you Invest in Berger paint for the long term means almost 5 to 10 years then Berger paint will give massive returns to the investors because the company has a good business and fundamental parameters.

Let’s see in short, some pros and cons of Berger’s paint.

Pros of Berger Paints India

  • Berger Paints share has shown a good profit growth of 15% for the recent 05 years.
  • Berger Paints’ share has remarkably decreased its debt by 67.02 Cr.
  • Berger Paints has a high promoter holding almost 75%.
  • Berger Paints share has maintained a Good Return of equity of 24% over the past 05 years.
  • Berger Paints has maintained a Good Return on capital employed of 31% over the past 3 years.
  • Berger Paints has a healthy interest coverage ratio of 27.5.

Cons of Berger paint India

  • Now Berger Paints share is trading at 22.12 times its book value.
  • Berger Paints has shown poor revenue growth of 8.43% over the last 03 Years.
The information or figures regarding the balance sheet and profit loss statement which is shown in this article about the Berger paints India is taken from the screener.

Berger Paint Share FAQs

Yes, Berger Paints is a good stock for the long term.

It is the second-largest paint company in India. If you will see the returns of the company since last 05 year it almost more than 200%. From last year company share price is not performing well but if you see the company last 03-year profit is in increasing YOY basis.

Berger paints share is a consistent compounder. If you calculate the projected share value for 2026 of Berger paint share according to its last 05-year performance it will be 1900 Rs in 2026.

Stock price CAGR of Berger paints Share over the last 3 years- 34% and for 5 years -26%.

On 8 Aug of 2022 PE of Berger paints share is 68.6.


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