Sharekhan's research report on Indigo Paints
Indigo Paints Limited’s (IPL’s) Q1FY2025 numbers were weak as margins lagged expectations. OPM fell by ~180 bps y-o-y to 15.2%, while PAT declined by 15% y-o-y. Consolidated revenue grew by 7.8%. IPL has witnessed high y-o-y sales growth in July as compared to past 7-8 months. It expects a sharp uptick in revenue and PAT from Q2 onwards. It targets domestic paint market share to improve to 5% from 3% currently in the coming years. Waterproofing segment is gaining strong traction and is expected to reach 10% of revenues in the next three years from current 5-6%.
Outlook
Stock trades at 43x/34x its FY2025E/FY2026E earnings, respectively. We maintain our Buy rating with a revised PT of Rs. 1,750.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
