Have you seen Logo of Indigo paints?
A zebra!
Wait....look carefully... Something Unique?
Zebra is Black and White Stripted...but the logo has different colours ...
Why...What the logo wants to say?
To show the uniqueness amoung all or say only of a kind....
And so is the tag line...
"Be Surprised"
Equity Research is the fun of knowing..Why,What,When,How and Who!
See the recorded Segment of Today's News Per Views on Zee Business to get more insights!
Questions are the only answers!
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Indigo Paints at TTM PE of 140 seems very costy ?
If i say based on certain assumption which analyst took it is priced at around 50% Discount?
Curious How?
Lets See!
IPO subscribed by 117 times around.
Reason?
Hype of IPO market?
True
But is that's the only Reason...
Let me give you one analytical reason which in my belief caught eye of HNI's and Quality Institutional Investor!
a) Company will do capex of 150cr with the use of Fresh Issue.
b) Company will be debt free
Company's Advertisement cost was at higher end of 10-11% which stablized in 1HFY21 to 6% around thus PAT margin increased to 10.5%...and seems sustainable!
Now, The Best Part
..............................
Fixed Asset Turnover Ratio 4.4x
Current PPE 142cr
Estimated PPE 292cr(142+150)
Estimated Turnover 1285cr(4.4*292)
Estimated PAT. 135cr(1285*10.5%)
EPS. 28.4 (135/4.76)
PE 53 (1490/28.4)
Industry PE around 81
Upside Potential 53%(81-53)/53
DISCLAIMER- Just for Educational Purpose consult financial expert before taking any decision!
& Visit Intro!
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