Berger Paints India Ltd is India’s second-largest paint manufacturer and a trusted name in decorative and industrial coatings. With a strong brand portfolio, wide distribution network, and consistent profitability, the company has long been a favorite among conservative investors. However, recent quarters have shown slowing sales growth and margin pressure due to raw material costs and competitive intensity. This article provides a balanced, fact-based outlook on Berger Paints’ fundamentals and offers a realistic share price target for each year from 2026 to 2030.
Business: Manufacturing and selling decorative paints, industrial coatings, and waterproofing solutions
Brands: Berger, Royale, Apex, Breathe Easy, WeatherCoat, etc.
Market Position: #2 in India (after Asian Paints), #4 in Asia, #7 globally in decorative paints
Ownership: Promoter holding at 74.98% – controlled by the Dhingra family
Listed: Yes – on BSE (500028) and NSE (BERGEPAINT)
Clarifications:
Is Berger Paints a good buy? Suitable for long-term, quality-focused investors, but current valuation (P/E ~54x, P/B ~9.5x) leaves little margin for error.
What is the rate of Berger paint? This refers to product pricing—varies by variant (e.g., Royale Luxury Emulsion: ₹1,200–₹1,800 per litre). Not related to stock price.
Future stock price? Realistic 2026 target: ₹490–₹560; by 2030: ₹620–₹740.
Berger vs Birla?Berger has stronger brand equity and higher ROCE (~27.5% vs Birla’s ~18%). Birla Corp is a cement company—different sector. If comparing Berger vs Asian Paints, Berger trades at a discount but with slightly lower scale.
Berger Paints: Key Financial Snapshot (as of Jan 2026)
Metric
Value
Market Capitalization
₹54,351.52 Cr
Current Share Price
₹466
52-Week High / Low
₹605 / ₹453
P/E (TTM)
53.65
P/B (TTM)
9.52
Book Value (TTM)
₹48.96
EPS (TTM)
₹8.69
ROE
20.19%
ROCE
27.51%
Dividend Yield
0.82%
Debt
₹0.39 Cr (effectively debt-free)
Cash Reserves
₹365.85 Cr
Sales Growth (YoY)
1.66%
Profit Growth (YoY)
6.15%
Shareholding Pattern
Category
Holding (%)
Promoters
74.98%
Domestic Institutions (DII)
11.07%
Public (Retail)
8.70%
Foreign Institutions (FII)
5.25%
Others
0%
Note: High promoter holding ensures strategic continuity.
Based on strong ROCE, debt-free balance sheet, and brand strength, but tempered by slow sales growth and rich valuation, we project the following realistic price ranges:
Year
Target Price Range (₹)
2026
₹490 – ₹560
2027
₹520 – ₹610
2028
₹550 – ₹660
2029
₹580 – ₹710
2030
₹620 – ₹740
These targets assume:
EPS CAGR of 8–10% (supported by 6% recent profit growth)
P/E range of 45–50x (slight compression from current 53.6x)
Sustained dividend payout (~35–40%)
Year-wise Breakdown
Berger Paints Share Price Target 2026
Year
Target 1
Target 2
2026
₹490
₹560
Rationale: Near-term upside is limited by flat sales growth (1.66%) and high input costs. However, debt-free status and 27.5% ROCE provide downside support.
Berger Paints Share Price Target 2027
Year
Target 1
Target 2
2027
₹520
₹610
Rationale: Expected benefit from premium product mix, rural demand recovery, and cost optimization. Monsoon season typically boosts waterproofing sales.
Berger Paints Share Price Target 2028
Year
Target 1
Target 2
2028
₹550
₹660
Rationale: By 2028, digital distribution and contractor partnerships could drive volume. ROCE sustainability justifies a premium vs peers.
Berger Paints Share Price Target 2029
Year
Target 1
Target 2
2029
₹580
₹710
Rationale: Long-term play on India’s housing and infrastructure boom. Paint consumption per capita remains low (~2.5 kg vs global avg 6+ kg).
Berger Paints Share Price Target 2030
Year
Target 1
Target 2
2030
₹620
₹740
Rationale: The upper end assumes sales growth rebounds to 8–10%, margin expansion, and market share gains from unorganized players. Even at ₹740, P/E would be ~50x—still rich but justifiable for quality.
Intense competition from Asian Paints, Kansai Nerolac, and local brands
Raw material volatility (titanium dioxide, resins)
Investment Suitability
Factor
Assessment
Risk Profile
Moderate (large-cap FMCG)
Time Horizon
Long-term (5+ years)
Volatility
Low-to-Moderate
Dividend/Income
Yes (0.82% yield + stable)
Ideal Investor
Quality-focused investor seeking brand moat and steady compounding
FAQs
Only for long-term portfolios. Avoid if seeking value entry—current valuation is stretched.
Product pricing varies (e.g., ₹1,200–₹1,800/litre for premium emulsions). Not related to stock price.
For 2026: ₹490–₹560. By 2030: ₹620–₹740.
Berger Paints (paints) and Birla Corporation (cement) operate in different sectors. Among paint companies, Berger is #2 after Asian Paints—offering strong ROCE at a slight valuation discount.
Final Verdict
Berger Paints remains a high-quality FMCG franchise with best-in-class capital efficiency and brand trust. However, its current valuation is premium relative to near-term growth. Our 2026–2030 price targets (₹490–₹740) reflect steady, sustainable appreciation—not explosive returns. Investors should consider accumulating on significant dips with a 5-year horizon.
📌 Disclaimer: Price targets are estimates based on current fundamentals and sector trends. They are not investment advice. Please consult a SEBI-registered advisor before investing.
