27/01/2021
*Indigo paints IPO REVIEW*
Indigo Paints is one of the fastest-growing paint companies in India and in terms of revenue, it is the 5th largest company in the decorative paint industry.
The company is engaged in manufacturing different types of decorative paints like enamels, emulsions, wood coatings, primers, distempers, putties, and cement paints.
It is the first company that started manufacturing certain differentiated products like Metallic Emulsions, Bright Ceiling Coat Emulsions, Tile Coat Emulsions, Dirtproof & Waterproof Exterior Laminate, Floor Coat Emulsions, Exterior and Interior Acrylic Laminate, and PU Super Gloss Enamel.
Indigo Paints has a strong market network with dealers in Tier 1, Tier 2, and Metros as well. It has 3 manufacturing facilities situated in Jodhpur (Rajasthan), Kochi (Kerala), and Pudukkottai (Tamil Nadu). It is further looking to expand its manufacturing capacities at Pudukkottai to manufacture water-based paints.
*Yes it's the 5th largest player in decorative paint segments, still it must be noted that Top 4 players hold more than 65% share in market, while this company has only 2% market share as of now, but as the base is very small company can show excellent growth provided management does the business passionately, and if we see the recent performance of company in covid times, management can be trusted as it has grown handsomely in bad times as well.*
It's a offer for sale Along with fresh issue. From the fresh issue Company is looking to expand its tamilnadu plant, looking to pay debt and has plan to increase tinting machines.
*Painting as a industry has a very bright future in india as the pe*******on and consumption is low compare to other countries. This industry can grow in double digit in next decade.*
*On financial front company has performed exceptionally well. In 2018 company was doing sales of ₹403 cr and profit of ₹ 12.86 cr and in the year 2020 company did sales of ₹624 cr and profit of ₹ 47.8cr. and if we talk about first 6 months performance of current financial year company has done sales and profit of ₹260cr and ₹27 cr respectively. Return ratios are also very good. In last 3 yrs company has grown
