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Indigo Paints - Colorful Prospects: Motilal Oswal Initiates Coverage

Indigo Paints - Colorful Prospects: Motilal Oswal Initiates Coverage

Paint color samples molded into car figurines stand on display. (Photographer: Luke Macgregor/Bloomberg)
Paint color samples molded into car figurines stand on display. (Photographer: Luke Macgregor/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Established in the year 2000, Indigo Paints Ltd. is the fifth largest company operating in the Rs 542 billion ($7.2 billion) paints industry in India. Its product portfolio includes emulsions, enamels, wood coatings, distempers, primers, putties and cement paint.

Despite being a late entrant to this industry with high entry barriers, Indigo Paints has been able to create its presence in the market through its multi-pronged strategy of introducing differentiated products, high ad spends (as a percentage of sales), focusing on the rural markets, and increasing the penetration of tinting machines.

The company has a presence in 27 States and seven Union Territories with its distribution network of more than 14,700 dealers.

We expect Indigo Paints to continue with its robust strategy and thereby deliver a sales/Ebitda/profit after tax compound annual growth rate of ~28%/35%/41% over FY21–24E.

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Motilal Oswal Initiating Coverage Indigo Paints.pdf

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