Sirca Paints - Long-Term Prospects Remain Positive: HDFC Securities

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. .HDFC Securities Retail Research.Starting with a fairly simple business model of importing PU products, repacking and selling it through its distribution network, Sirca Paints India Ltd. has become one of the leaders in northern India for wood coatings. To add to its product kitty, the company has launched melamine, NC products, and economical PU products under Unico brand for which it has set up an in-house manufacturing unit. Besides this, it has strategically forayed into wall paint segment. In FY21, Sirca has signed an exclusive distribution agreement with Durante and Vivan (for adhesives and for super luxury paints). This now completes Sirca’s product kitty which includes everything from putty to wall paints, economical and premium wood coatings along with adhesives. In the next two quarters, the company will be focusing its efforts on adding new manufacturing units in South India, to help cater to the Western and Southern Indian markets which it expects to commission before the end of H1 FY24. Going ahead we expect the company to report sales/ Ebitda /profit after tax compound annual growth rate of 30%/40%/40% respectively over FY22-25E on the back of strong growth across categories driven by-rapid distribution expansion,hiring of experienced industry professionals leading to improved efficiencies and fast track growth,a sharp focus on upgrading the IT, ERP, and digital systems andoperating leverage with improving efficiencies. .Click on the attachment to read the full report:.Syrma SGS Tech- Well Positioned To Capitalise On Strong Industry Tailwinds: HDFC Securities Initiates Coverage.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.

Sirca Paints - Long-Term Prospects Remain Positive: HDFC Securities

In FY21, Sirca has signed an exclusive distribution agreement with Durante and Vivan (for adhesives and for super luxury paints).

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