Berger Paints India Limited is a company that manufactures and distributes paints. It is a multinational company headquartered in India in Kolkata.Market Capitalisation
As of 30 July, 2018, Berger Paints has a market capitalisation of about Rs.31,257 crore.
Berger Paints India’s Wealth and Recent Performance
From the annual report released by the company, the following points were noted with respect to the changes from the financial year 2016–2017 to the financial year 2017–2018:
- Revenue from operations (consolidated) increased from Rs.4,555.8 crore to Rs.5,147.2 crore
- The operating profit of the company rose from Rs.773.1 crore to Rs.852.9 crore
- The profit after tax of the company increased from Rs.449.4 crore to Rs.460.8 crore.
- The earnings per share rose by Rs.0.12 to Rs.4.75.
- The market capitalisation of the company also increased from Rs.23,507 crore to Rs.24,925 crore.
- The dividend per share rose to reach a high of 180.
Berger Paints India’s Stock Trends in 2018
In January 2018, the stock began trading at about Rs.268 and by 27 July 2018, the stock had risen to about Rs.317.
- In January, the stock dipped to less than Rs.250 but recovered to end for the month at about Rs.250.
- In February, the stock again dipped below Rs.250 and stayed below the Rs.250 mark for most of the month. The stock closed for the month at about Rs.248.
- In March 2018, the stock began at an even lower price, at around Rs.245. Only on 15 March, 2018, the stock reached the Rs.250 mark again. The stock dipped below Rs.250 again that month in four days but recovered strongly to end the month at about Rs.256.
- In April 2018, the stock went over Rs.260 and stayed above that range for most of the month. The stock closed for the month at about Rs.286.
- The first week of May 2018 saw the stock price go down to about Rs.266 but the stock regained in price and breached the Rs.300 mark. It closed for the month at about Rs.298.
- June 2018 saw the price of the stock lower again but the stock remained above Rs.280 for the most part. It closed for the month at about Rs.281.
- July 2018 saw an increase in the trading price of the stock, with a steady increase shown throughout the month. By mid-July, the stock breached the Rs.300 mark. A final 180% dividend was announced on 26 July 2018. By 30 July, 2018, the stock had closed at about Rs.313.
Berger Paints India’s Stock Trends in 2016 and 2017
In January 2016, the stock began at about Rs.186. By 30 December, 2016, the stock had reached a price of about Rs.210.
- Throughout January 2016, the stock remained at a price point that was between Rs.180 and Rs.190. The stock then climbed over Rs.190 in the first week of February but dipped down again. The stock reached its lowest point for the month on the last day of trading for the month, closing at about Rs.160. On 17 February, 2016, an interim 65% dividend was announced. The stock appeared to remain between Rs.160 and Rs.170 for most of March but in the last couple of days of the month, the stock rose to about Rs.174.
- April 2016 marked a period of steady increase in the stock price with the stock beginning the month at a price of about Rs.174 and ending the month at about Rs.183. The month of May 2016 also marked a period of steady increase but the stock did not sustain the growth. It touched a high of about Rs.210 but dipped again and recovered to close for the month at about Rs.210. June 2016 was a period in which the stock dipped a little and did not fluctuate much after that. The stock closed for the month at about Rs.197 for the month.
- July 2016 marked a period of gain for the price of the stock with it closing at about Rs.237 for the month. On 15 July, 2016, a bonus with the ratio 2:5 was announced. On 26 July, 2016, a final 100% divided was announced. While the first week of August 2016 saw a period of decline, the stock rose in price again to reach about Rs.260 at the end of the month. The stock remained just over Rs.260 for most of September 2016 and closed at about Rs.261 at the end of the month.
- October 2016 marked a time period in which the stock remained between Rs.255 and Rs.265 with not many fluctuations. November 2016 saw a steep decline in price to a low of about Rs.180 but the stock recovered strongly to close for the month at about Rs.228. December 2016 was a period of decline for the stock price which recovered a little to end the month at about Rs.210.
- The stock opened at about Rs.211 for January 2017 and closed at about Rs.273 by the end of December 2017.
- In January 2017, even though the stock spiked in price from about Rs.210 initially, it later dipped down to close at about Rs.211 by the end of the month. February 2017 saw a fluctuating increase in the price but the end result was that the stock did indeed trade at a higher value. It closed for the month at about Rs.233. There was a dip in prices in the first two weeks of March 2017, but the stock recovered to close at about Rs.242 for the month.
- The third and fourth weeks of April 2017 were periods of growth for the stock with it closing at about Rs.261 by the end of the month. The stock held steady well over Rs.250 for most of May but finally ended up decreasing in price to close at about Rs.251 by the end of the month. In June, the stock held steady for most of the month at just over Rs.251 but eventually declined to close at about Rs.246.
- The initial weeks of July saw the price increase but later, at the end of the month, the stock closed at about Rs.247. A final 175% dividend was announced on 27 July, 2017. The stock did not reflect any major price changes in the month of August 2017, instead, the stock continued on a lower price trend. It closed for the month at about Rs.246. By the end of the first two weeks of September 2017, the stock saw a solid increase to reach a high of about Rs.271. The stock then continued on a downward trend for the rest of the month to close at around Rs.245.
- The stock steadily grew in price over most of October 2017. It reached a high of about Rs.280. Later, it declined a little to close for the month at about Rs.266. November 2017 was a period of decline for the stock with the price closing at about Rs.258 for the month end. After an initial decline in December 2017, the stock surged again to close at about Rs.273 for the month.
Should You Invest in Berger Paints India?
- According to Business Standard on 6 July, 2018, Berger Paints India Limited has signed an agreement in order to set up a joint venture in India with Rock Paint Company of Japan. News of this joint venture spiked stock prices.
- According to the Economic Times on 14 July, 2018, Berger Paints’ Russian arm received contracts for painting the Football World Cup stadiums along with two airports in Russia in 2018. This boosted the company’s turnover.
- The annual report released by the company for the financial year 2017–2018 indicates that the revenue from operations has grown for five consecutive years.
- The operating profit of the company has risen for five years consecutively including the FY 2017–2018.
- The earnings per share of the company have also increased steadily over a five year period including the financial year 2017–2018.
- The market capitalisation of the company rose from Rs.7,933 crore in the financial year 2013–2014 to Rs.24,925 crore in the financial year 2017–2018.
- The company received an award in 2018 for zero environmental pollution.
- According to Coatings World, 2018, the company ranks 14th overall in the world with respect to manufacturers of paints and coatings.
- In the list of India’s most valuable companies in 2017, Berger Paints placed 99th out of the top 500.
- In the list of India’s Super 50 companies according to Forbes, the company was listed in the consecutive years, 2015, 2016, and 2017.
- While all of these indicate that Berger Paints India Limited could be a great investment, it is best to invest in it after further research based on personal interests, financial commitments, and risk appetites.
The company’s headquarters is located in Kolkata while there are ten manufacturing plants located in India. The company also operates in other countries, namely, Poland, Nepal, Bangladesh, and Russia. The total number of employees with the company is about 2,800 people. The company also has over 25,000 dealers who take care of the distribution network. The company also does business that, on a consolidated basis, exceeds Rs.4,500 crore.
History of the company
The international history of the company began with the manufacture of a special blue colour paint. This blue colour was known as Prussian blue. It was created using a special formula by a person known as Lewis Berger. This laid the foundation of what was to later become Berger Paints.
In India, a person called Mr. Hadfield created a company located in Kolkata (then known as Calcutta) in the early 1920s. This company was Hadfield’s India Limited. After India gained independence, British Paints (Holdings) Limited, UK, acquired Hadfield’s India Limited. Eventually, in the year 1983, Berger Paints India Limited was born as a result of a name change from British Paints (India). Later, the Dhingra brothers who were based out of Delhi acquired a majority stake in the company.
Management of the company
The people who comprise the management of the company are as follows:
Mr. Kuldip Singh Dhingra - Chairman
Mr. Gurbachan Singh Dhingra - Vice-Chairman
Mr. Abhijit Roy - Managing Director and CEO
Mr. Kanwardip Singh Dhingra - Director and National Business Development Manager
Mrs. Rishma Kaur - Director and National Business Development Manager
Mr. Gopal Krishna Pillai - Director
Mr. Dhirendra Swarup - Director
Mr. Kamal Ranjan Das - Director
Mr. Pulak Chandan Prasad - Director
Mr. Naresh Gujral - Director
Other members of the management team include:
Mr. Srijit Dasgupta - Director (Finance)
Mr. Aniruddha Sen - Senior Vice President and Company Secretary
Mr. Tapan Kumar Dhar - Vice President (Research and Development)
Mr. Subhashish Das - Vice President (Corporate HR and Personnel)
Mr. Deepak Misra - Vice President (IT)
Dr. Prosanta Kumar Ghosh - Vice President (Manufacturing)
Mr. K. K. Sai - Vice President (Marketing, Retail Decorative Paints)
Mr. Indrajit Amal Majumdar - Vice President (Sales, Retail Decorative Paints)
Mr. Sujyoti Mukherjee - Vice President (Finance and Accounts)
Mr. Sudip Dasgupta - Senior General Manager (Sales and Marketing Auto and GI Division)
Mr. A. Chandar - General Manager (Materials)
Mr. Bijoy Mukherjee - General Manager (Powder Coatings Sales and Marketing)
Mr. Sanjay Chowdhury - Business Head (Protection)
Berger Paints India Limited Listings in NSE, BSE, and Other Indices
The company is listed under the following codes:
BSE - 509480
NSE - BERGEPAINTEQ
ISIN Code - INE 463A01038
SECT - Paints and Pigments
IND - Paints/Varnishes
The company forms a part of indices like the Nifty 200, Nifty 500, Nifty Midcap 100, S&P BSE 500, and others.
The company is also listed on the Bangalore Stock Exchange Limited, Calcutta Stock Exchange Association Limited, and Cochin Stock Exchange Limited among other stock exchanges.
The company’s customer service division lists the address of the company as:
Berger House, 129 Park Street, Kolkata - 700017
Phone number: +91 33 2229 9724
Fax: +91 33 2249 9009
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