Berger Paints India Limited Just Missed EPS By 23%: Here's What Analysts Think Will Happen Next

It's been a good week for Berger Paints India Limited (NSE:BERGEPAINT) shareholders, because the company has just released its latest half-yearly results, and the shares gained 2.8% to ₹478. Statutory earnings per share fell badly short of expectations, coming in at ₹1.86, some 23% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹68b. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Berger Paints India's 22 analysts is for revenues of ₹134.6b in 2027. This reflects an okay 6.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 10% to ₹11.59. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹134.6b and earnings per share (EPS) of ₹11.59 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Berger Paints India

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹565. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Berger Paints India, with the most bullish analyst valuing it at ₹675 and the most bearish at ₹440 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Berger Paints India's growth to accelerate, with the forecast 13% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Berger Paints India is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹565, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Berger Paints India analysts - going out to 2029, and you can see them free on our platform here.

Even so, be aware that Berger Paints India is showing 1 warning sign in our investment analysis , you should know about...

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