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

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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

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