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Below are Views On Indigo Paints upcoming IPO By Mr. Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd

Indigo Paints are the fastest growing amongst the top five paint companies in India. Company is the fifth largest company in the Indian decorative paint industry in terms of their revenue from operations for Fiscal 2020. Company manufactures a complete range of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties and cement paints. Company has increased its profits manifold from F.Y. 2018 to F.Y. 2020 by increasing it from Rs. 12.8 cr to Rs. 47.8 cr especially due to improvement in the gross margins. Company revenue from operations have grown at a CAGR of 41.9% between Fiscal 2010 and Fiscal 2019, compared to the range of 12.1% to 13.1% recorded by the top four paint companies in India. Although, Company margins and return on capital are lower than industry leading players like Asian Paints, Berger Paints. If the issue is priced reasonably, we expect a good response for this IPO. We expect the Indigo Paints issue to start within the next two weeks.

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