Berger Paints India Analysis

dividend

Pros

• Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).

Cons

• Berger Paints India is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
• No need to calculate the sustainability of Berger Paints India's dividends as it is not paying a notable one for India.
• Berger Paints India is not paying a notable dividend for India, therefore no need to check if the payments are stable.
• Berger Paints India's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Berger Paints India's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Berger Paints India's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Berger Paints India's earnings are expected to exceed the low risk growth rate next year.
• Berger Paints India is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
• Performance (ROE) is expected to be above the current IN Chemicals industry average.
• Berger Paints India's revenue growth is expected to exceed the India market average.

Cons

• Cash flow for Berger Paints India is expected to increase but not above the 50% threshold in 2 years time.
• Berger Paints India's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).
• Berger Paints India's earnings growth is positive but not above the India market average.
• Berger Paints India's net income is expected to increase but not above the 50% threshold in 2 years time.
• A decline in Berger Paints India's performance (ROE) is expected over the next 3 years.
• Berger Paints India's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Berger Paints India's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Berger Paints India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Berger Paints India is profitable, therefore cash runway is not a concern.
• Berger Paints India is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (92.6%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 3.7x debt.
• Berger Paints India's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (55.2% vs 30.8% today).
• Interest payments on debt are well covered by earnings (EBIT is 70.9x coverage).
• Berger Paints India's level of debt (30.8%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Berger Paints India board of directors is about average.
• Abhijit's remuneration is lower than average for companies of similar size in India.
• Abhijit's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the Berger Paints India management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

past

Pros

• Berger Paints India's 1-year earnings growth exceeds its 5-year average (35.8% vs 14.6%)
• Berger Paints India's year on year earnings growth rate has been positive over the past 5 years.
• Berger Paints India used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Berger Paints India has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• Berger Paints India's earnings growth has exceeded the IN Chemicals industry average in the past year (35.8% vs 9.1%).

Cons

• Berger Paints India's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

value

Pros

• 509480 outperformed the Chemicals industry which returned 2.2% over the past year.
• 509480 outperformed the Market in India which returned -14.5% over the past year.
• BSE:509480 is up 12.2% outperforming the Chemicals industry which returned 6.9% over the past month.
• BSE:509480 is up 12.2% outperforming the market in India which returned 8% over the past month.

Cons

• Berger Paints India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Berger Paints India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Berger Paints India is overvalued based on assets compared to the IN Chemicals industry average.
• Berger Paints India is poor value based on expected growth next year.
• Berger Paints India is overvalued based on earnings compared to the IN Chemicals industry average.
• Berger Paints India is overvalued based on earnings compared to the India market.