Indigo Paints made a humble start in FY2000, when it set up a cement paint manufacturing unit in Jodhpur, Indigo has become the fifth largest decorative paint manufacturer in India.
The company has three manufacturing facilities – in Jodhpur, Kochi and Pudukkottai, strategically located in close proximity to the company’s raw material sources.
As of FY20, the company had a distribution network of 36 depots and 11,230 active dealers and a tinting machine population of 4,296 across India. Indigo is currently present in 27 states (it is yet to enter Himachal Pradesh) and 7 union territories as of date. For FY18-20, company reported sales, PAT CAGR of 26%, 104% respectively, supported by EBITDA margin expansion of ~800 bps during the same period. Indigo has a lean balance sheet with D/E 0.2x and RoE, RoCE of ~28%, ~22% respectively. Know what do we think about this IPO by reading this detailed note.