Indigo Paints Q4 Review - The Investment Thesis Is Nearly Intact: ICICI Securities
A tin of ready mixed blue paint. (Photographer: Jasper Juinen/Bloomberg)

Indigo Paints Q4 Review - The Investment Thesis Is Nearly Intact: 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.’s Q4 FY21 and FY2021 was in-line with our estimates (it’s early days to have (published) consensus expectations).

That said, some investors may interpret the Q4 revenue growth print of 41% (versus Asian Paints Ltd. at 44%) as a tad underwhelming.

In our view, the long-term (growth) story of the company is intact, as of now.

  1. It has increased dealer count by ~2,000 to 13,200 in FY21 (tinting machines to 5,500 (from 4,300 in FY20)).
  2. Revenue share of differentiated products has increased to ~30% in FY21 from ~29% in FY20.
  3. Revenue share of non-Kerala states increased to YoY ~70% in FY21 from ~65% (though it raises some questions on growth in Kerala).

Click on the attachment to read the full report:

ICICI Securities Indigo Paints Q4FY21 Results Update.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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