Indigo Paints - Differentiation Is The Key: ICICI Securities
A worker pours paint at a manufacturing facility. (Photographer: Taehoon Kim/Bloomberg)

Indigo Paints - Differentiation Is The Key: ICICI Securities

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.

ICICI Securities Report

Indigo Paints Ltd. has been able to carve out a niche in the ‘high-entry-barrier’ paints industry on the strengths of:

  1. Product differentiation

  2. ‘Share of voice’ higher than ‘share of market’

  3. Focus on (differentiated) distribution

  4. Industry-leading human resource policies (in our view)

We forecast 30%, 46% compound annual growth rate in revenue, Ebitda, respectively, over FY21-23E.

Key business risk is potentially higher competitive intensity in Kerala and key stock risk is potentially lower trading multiples due to entry of Aditya Birla Group in paints category.

Click on the attachment to read the full report:

ICICI Securities Indigo Paints Initiating Coverage.pdf


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 author entity and do not represent the views of BloombergQuint.

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