Brokerage sentiment on Berger Paints remains divided following the company’s Q1FY26 update. While Nuvama and HSBC have maintained their bullish stance with ‘Buy’ ratings, Morgan Stanley continues to stay cautious with an ‘Underweight’ view, citing margin pressures and competitive risks.
Nuvama on Berger Paints share: Maintains ‘Buy’, raises TP to ₹670
Nuvama Institutional Equities has retained a ‘Buy’ rating on Berger Paints and raised its target price to ₹670 from ₹660. The brokerage expects a gradual demand recovery with the second half of FY26 likely to outperform the first.
Nuvama also noted a reduction in dealer enthusiasm for new entrants due to shrinking margins, suggesting established players like Berger, Asian Paints, and Indigo could benefit from steady demand rebound. Following a Q1FY26 margin miss, it has cut its EPS estimates for FY26E and FY27E by 2%.
Morgan Stanley on Berger Paints share: Retains ‘Underweight’, TP at ₹482
Morgan Stanley has retained its ‘Underweight’ rating on Berger Paints with a target price of ₹482. The brokerage pointed out that standalone revenue rose 2% year-on-year, while decorative volume grew 5.6%, slightly ahead of peers like Asian Paints (3.9%).
It noted that Berger continues to gain market share among listed paint companies, rising to 21.2% in FY26 from 20.3% in FY25. Management expects demand to improve in Q3 and Q4 with 9–10% value growth, although Morgan Stanley remains cautious due to intense competition and margin headwinds.
HSBC on Berger Paints share: Maintains ‘Buy’, TP at ₹640
HSBC remains positive on Berger Paints, retaining its ‘Buy’ call with a target price of ₹640. While Q1FY26 was affected by early monsoons, Berger’s 5.6% volume growth outpaced the market.
HSBC expects industry-wide growth to bounce back in the second half of the fiscal, particularly in Q4, which benefits from a favourable base. The brokerage anticipates a return to double-digit revenue growth for Berger Paints during this period.
With mixed short-term triggers and diverging views on margin sustainability, Berger Paints continues to be a closely watched stock in the paints sector.
Disclaimer: The views and investment recommendations expressed in this article are those of the respective brokerages. These do not represent the views of Business Upturn and do not constitute investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
