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

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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

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