The below article is a great read on the current developments in the company:
Some excerpts: (ALL CREDIT GOES TO ARTICLE OWNER)
- Hell Infra is desperately trying to acquire the company
- Shalimar Paints is doubling production capacity from 78 million litres to 180 million litres by modernising existing facilities. The capex earmarked for FY24 is ₹190 crores
- New R&D facility in Nashik to support new product launches like wood coatings & waterproofing
- More hiring in functions like sales, R&D and operations to support expansion
- Increase marketing spends; 5% of annual sales (from < 2%)
- Added 2,000 dealers in the last 5 quarters contributing 15% of sales
Shalimar Paints hopes to cross ₹1,000 crores in sales by FY27 (₹486 crores in FY23).
On a relative basis, Indigo Paints is currently where Shalimar Paints wants to be by FY28 (sales = ₹1,250 crores, EBITDA margin = 17%)
If I play it conservatively and assume an EBITDA margin of 12%, a back-of-the-envelope calculation extrapolates to a market cap of ₹4,500 crores by FY28 – a potential annualized stock price return of 28.6%
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