Berger Paints
M Cap: Rs 1,623cr
Average delivery volumes in the stock jumped 95 per cent in the last fortnight following the news that the company had approved a preferential issue of 72 lakh shares to Nalanda India Fund at Rs 50.50 a share. Post this issue, Nalanda’s stake in Berger will increase from 3.73 per cent to 5.5 per cent. According to the company, proceeds from conversion of warrants to promoters amounting to Rs 135 crore would be utilised for the installation of a 1 lakh tonne water-based plant in south India. The exact location has not been decided yet. Revenues remained flat at Rs 372.6 crore in the June 2009 quarter compared with Rs 378 crore in previous corresponding quarter. The company attributed this to a temporary plant shutdown in April for implementation of ERP. Net profit improved 22 per cent to Rs 28.38 crore compared with Rs 23.17 crore. At the current price, the stock trades at 17.5 times trailing 12-month earnings.
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