Indigo Paints Q1 Review - Trending Well: ICICI Securities
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ICICI Securities Report
Despite tough operating conditions, Indigo Paints Ltd. has continued to demonstrate strong business model and execution via-
expansion of dealer count and tinting machines by 5.1% and 6%, QoQ,
while Kerala revenues are likely impacted in Q1, outperformance in other states is pleasing and
it has successfully increased product prices eight times in past 12 months.
As Indigo Paints has raised prices of different products every month, there is limited impact on volumes, in our view.
While input inflation is a headwind for gross margins, we model Ebitda margin expansion of 270 basis points YoY to 19.7% in FY22 driven by-
lower advertising and promotion and
cost saving initiatives.
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