Berger Paints expects slump in demand

Berger Paints expects slump in demand
Berger Paints India: Quotes, News
BSE 263.10BSE Quote1.3 (0.49%)
NSE 263.35NSE Quote1.1 (0.42%)
Rising interest rates and the ever-growing inflation have caused a dip in the demand for decorative services, especially paint jobs. Berger Paints conceded that it is expecting at least a 5% fall, by volume, in demand this year. The prices of paints have gone up as well which hasn't helped either.

"Paint prices have increased by 15 percent and that in itself dampens demand to a certain extent and then interest rates have gone up so much and all along there is hardening of the interest regime," Subir Bose, Managing Director, said.

The company recently increased its prices by 6.8% and is planning a further 2% increase in the coming weeks. Berger Paints has been witnessing a slowdown in business as it depends on the decorative segment for 80% of its revenue, the rest coming from the industrial segment.

View: One of the good paint company listed on stock exchange. Although right now it is trading at a higher price, but when the price fall a bit more because of the ongoing monsoon season, then it will yeild an opportunity for the investors evaluate the company at new price.   

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