Neutral Indigo Paints; target of Rs 2025: Motilal Oswal

Motilal Oswal recommended Neutral rating on Indigo Paints with a target price of Rs 2025 in its research report dated August 08, 2023.

Broker Research

August 12, 2023 / 12:18 IST

Neutral

Motilal Oswal's research report on Indigo Paints

Indigo Paints (INDIGOPN) delivered resultsin line with our estimates, while slightly surpassing sales expectations. The company achieved robust doubledigit sales growth in 1QFY24, outpacing the industry’s growth rate. This achievement was facilitated by a dedicated emphasis on Tier I and II cities. The management indicates good sales performance in Jul’23 and anticipates this positive momentum will continue in the upcoming quarters. The company exhibited growth across all geographies in India, demonstrating a reduced reliance on Kerala. Furthermore, Apple Chemie has successfully expanded its operations beyond Maharashtra. We reiterate our BUY rating on the stock due to its promising sales growth outlook, synergies with Apple Chemie, consistent capacity & distribution expansion, as well as its favorable valuation multiples compared to its peers.

Outlook

We reiterate our BUY rating with TP of INR2,025 (45x Mar’25E EPS).

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