Shares of Berger Paints rose over 8 percent in the early trade on Friday on good fourth-quarter results and steep fall in crude oil prices. The company reported a 4.91 percent jump in its consolidated net profit to Rs 111.43 crore in Q4 as against Rs 106.21 crore in the same quarter last year. Oil prices falling to lower levels in 3 months also lifted the stock.

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The stock gained as much as 8.6 percent to Rs 326.40 per share on BSE. At 10:10 am, the stock was trading 8.4 percent higher at Rs 325.70 as against 0.7 percent (285 points) rise in BSE Sensex at 40,117.

The company's revenue from operations during the quarter was up 13.38 percent to Rs 1,472.09 crore as against Rs 1,298.27 crore, meanwhile, the total expenses was at Rs 1,304.62 crore, while total income stood at Rs 6,061.86 crore.

For FY2018-19, the company's net profit rose 8 percent to Rs 497.45 crore versus Rs 460.83 crore in 2017-18. Total income for FY19 rose 14.7 percent at Rs 6,061.86 crore (YoY).

The board recommended payment of a dividend of Rs 1.90 per equity share of the face value of Re 1 each for 2018-19.

JM Financial Research expects the company's earnings growth trajectory to improve henceforth as margin pressures from higher crude prices would now be largely in the base from the next quarter. However, given Berger’s earnings growth trajectory and valuation remain quite similar to Asian paints, their preference remains with the latter.

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