Berger Paints' Valuations Look Weirder
The double-digit sales volumes growth of leading paint makers indicates that the sector has seen a faster-than-anticipated recovery. Drawing curtains on the December quarter earnings season for the sector was Berger Paints India Ltd. On a year-on-year (y-o-y) basis, its volumes are estimated to have grown 31% last quarter. This was marginally behind close competitor Asian Paints Ltd, where volumes grew 33%. What’s more, the company’s management is upbeat on demand outlook. In a post earnings conference call, the management said, volume growth was led by a combination of fresh and pent-up demand largely from smaller cities and towns.