BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Putty, an undercoat, offers growth potential in-line with paint industry, or slightly higher.
Current estimated market size of putty is approximately Rs 40 billion (it is one-tenth of paints industry).
Leading players (market share) are Ultratech Cement Ltd. (25%), JK Cement Ltd. (23%), and Asian Paints Ltd. (22%).
Benefits of putty are 1. to smoothen the wall/wood surface and 2. filling up the cracks.
Paint companies have introduced differentiated putty variants such as -
1. combination product of putty plus primer, 2. putty with waterproofing benefits and 3. coarse putty.
Putty market is growing at approximately 12-15% per annum and has Ebitda margin of approximately 20% (higher than paints).
We believe paint companies have strong ‘right to win’ in this market due to -
1. usage of same brands,
2. better access to paint dealers versus cement companies,
3. prescription route of painters (paint companies have better connect with painters),
4. margin-over-market share approach of cement companies and
5. lower freight cost (mix load) in paints compared to cement.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR