Indigo Paints Q2 Review - Raw Material Headwinds Impacts Performance: Dolat Capital

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..Dolat Capital Report.Indigo Paint Ltd.’s Q2 FY22 results were below our estimate due to delayed monsoon withdrawal and significant raw material inflation. Nevertheless, sharp demand revival in Kerala (Indigo’s largest market) in August-September 2021 from weak sales in July 2021 was encouraging. Gross margin contracted 850 basis points was in line with Asain Paints Ltd., Kansai Nerolac Paints Ltd. Indigo Paints implemented price hikes in last 10 months to mitigate the impact and will be taking further price hikes in November 2021 (average ~8-9%). Emulsion category, which contributes ~43% to topline, grew better than other categories with value/volume of 41/24%. We believe that the margins would remain under pressure in the near term due to raw material and high advertising and promotional spends, but improve post festive season with calibrated price pass on..Click on the attachment to read the full report:.DISCLAIMERThis 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..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Indigo Paints Q2 Review - Raw Material Headwinds Impacts Performance: Dolat Capital

Indigo Paints Q2 Review - Raw Material Headwinds Impacts Performance: Dolat Capital

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