Indigo Paints Limited domiciled in India is pinned into the manufacturing and sale of decorative paints with manufacturing facilities in Tamil Nadu, Kerala and Rajasthan. It is the fastest growing among the top 5 decorative paint companies in India.
Investment Rationale
Company is resolved to spend on capex and deleverage its balance sheet with the net proceeds raised through the issue. Margins are expected to improve further with its innovative differentiated products and multi-pronged methodology in developing brand equity, and the wide distribution network.
• Recovery of rural economy is at a lot more prominent speed contrasted with metropolitan regions and the interest for Decorative paints is higher to that of Industrial paints after lockdown. Indian decorative paint market is expected to grow at 13% CAGR through 2024.
• Indigo Paints Ltd with its solid traction in these territories will assist it to capture the unorganized paint market in these rural and tier 2-4 cities. The brokerage remains sanguine on company’s long-term growth backed by its current performance metrics and future endeavours, hence remains bullish in this counter.
