Sharekhan's research report on Indigo Paints
Indigo paints Limited’s (IPL’s) revenue and PAT grew by 11.5% and 25.9% y-o-y in Q2FY2024 to Rs. 271 crore and Rs. 26.1 crore, respectively; OPM rose 153 bps y-o-y to 15.4%. Revenue growth stood ahead of industry growth. Management expects the gap to widen in H2 led by strategic initiatives and festive demand. We expect revenue and PAT to clock a 19% CAGR each over FY2023-26E, led by by double-digit volume growth, driven by distribution expansion, focus on brand building, capacity addition, foray into project business and scale-up in the B2B business.
Outlook
The stock trades at 44x/36x/30x its FY2024E/25E/26E earnings. We maintain our Buy rating with an unchanged PT of Rs. 1,850.
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.
