Indigo Paints Q2 Results Review - Attractive Valuations; Upgrade To 'Accumulate': Dolat Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Indigo Paints Ltd.’s Q2 FY24 results came below our estimate. Revenue growth in Q2 FY24 was better compared to peers - Asian Paints Ltd.(+0.2%), Berger Paints India Ltd. (+3.6%) and Kansai Nerolac Paints Ltd. (+1.3%).At the segmental level, cement paints and putty (+47.9%) and primers and distempers (+26.6%) performed better compared to other segments. Indigo Paint's gross margin expanded 400 basis points to 45.7% as a result of softening in raw material prices. However, Ebitda margin expanded by mere 150 bps was lower compared to Asian Paints (+570 bps), Berger Paints (+350 bps) and Kansai Nerolac (+360 bps). We have downward revised our FY24/25E earnings per share by 4.6/4.7% at Rs 30.2/38.4 to factor in Q2 performance and introduced FY26E at Rs 48.7. Valuing the stock at 33 times FY26E EPS arrive at a target price of Rs 1,607. Due to the recent fall in the stock price, Upgrade to 'Accumulate'..Click on the attachment to read the full report:.Berger Paints India Q2 Results Review - Adverse Mix Impacts Realisation; Q3 To Be Better: Nirmal Bang.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Indigo Paints Q2 Results Review - Attractive Valuations; Upgrade To 'Accumulate': Dolat Capital

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