Berger Paint

Berger Paint:

Berger paints is one of the oldest and most technologically advanced companies in paint industry. With a strong distribution network, Berger has reached almost in every corner of Bangladesh. product range of the company includes decorative, Industrial, marine, textured coating, wood coating etc. Berger has also stepped into textile sector. The company has specialty in chemical industry.

Reasons behind choosing this company’s stock:

Berger is a very renowned company in chemical industry. The company has a high demand in share market. Their trading code is BERGERPBL. The company has listed as one of the top 20 companies for gaining highest EPS and market capital in September, 2016. They have a high trading price in DSC. The company has constantly increasing share price trend from 2015 to this year. The last closing price when writing this report was 2360.2 taka. The company has a good amount of paid up capital and authorized capital. Their current market capital is 53730.536 taka. The company gave 370% cash dividend in 2015. They did not offer any bonus (stock dividend) and right issue. The company’s last EPS is 62.51 taka. This means they are gaining higher form common shares. The company’s current P/E ratio is 28.58. It is relatively higher than other stocks of the portfolio. It shows that their share price is fairly valued and investors are anticipating higher growth in future. The company is taking higher risk than other companies of the portfolio. There is a risk of overvalued shares but we are expecting their share will grow above the average rate relative to the market. The company’s monthly return is 0.024700407 and risk is 0.007229277.

So overall the industries are growing well. So we are expecting to earn maximum profit and it can help us to minimize the risk.

SECURITIES