Berger Paints (BERGEPAINT)

FairStock Score: 49/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Berger Paints has the kind of franchise I admire: trusted brand, strong distribution, and a promoter team holding nearly 75 percent. Its financial position is sound—debt is only 11 percent of equity, ROE is 17.13 percent, ROCE is 24.90 percent, and the Altman Z-score of 6.09 suggests no distress. A Piotroski score of 8 out of 9 and positive free cash flow of ₹619 crore add to the quality. But my mentor Graham taught me that no good business is a good buy at any price. At ₹468.40, Berger trades at 47.46 times earnings and 8.87 times book. EV/EBITDA of 32.49 leaves nothing for error. Meanwhile the latest reality is sobering: sales grew only 3.13 percent and net profit fell 7.57 percent. Five-year revenue CAGR of 11.11 percent shows the company can grow, but the current price assumes that pace accelerates, not decelerates. The Graham Number is ₹103.67 and my rough DCF value is ₹70.24—against ₹468, there is no margin of safety; there is a margin of pain. I would rather miss a rally than overpay for one. Even with a quality franchise, paying 47 times a business whose profit is falling is speculation. Berger may deserve a place on a watchlist, but not in a value portfolio today. I need either a meaningfully lower price or clear evidence of renewed double-digit growth before I part with my money.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer