Buy Indigo Paints; target of Rs 2010: Motilal Oswal

Motilal Oswal is bullish on Indigo Paints recommended buy rating on the stock with a target price of Rs 2010 in its research report dated May 23, 2022.

Broker Research

May 24, 2022 / 19:24 IST

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

26 Aug, 2025 12:21

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Motilal Oswal's research report on Indigo Paints

INDIGOPN reported in line sales, but EBITDA margin surprised positively in 4QFY22. The sequential improvement in gross margin over the past two quarters is a trend that will continue going forward. While volume growth in 4QFY22 was affected by the advancement of purchases in Oct-Nov’21, ahead of the price increases in Dec’21, growth has resumed in Apr-May’22. In 1HFY23, INDIGOPN is likely to gain from a low base, especially in Kerala, which was the most affected by the second COVID wave in FY22. We maintain our Buy rating.

Outlook

The outlook remains positive as the management continues to deliver on its above-mentioned strategy. We maintain our Buy rating with TP of INR2,010 per share (50x Mar’24E EPS).

For all recommendations report, click here