Valuation and Recommendation: Between FY18-20, Indigo Paints Ltd's revenues have grown at CAGR of 26% while EBITDA/PAT grew by 88%/93% respectively on the back of improving profitability. EBITDA margins have improved from 6.5% in FY18 to 14.6% in FY20 and further to 18.5% in 1HFY21. As the company is still in growth phase, we believe, it is likely to maintain the higher than the industry revenue growth. With reduction in A&P spend (as% to sales), EBITDA margins are expected to improve further and likely to be in vicinity of market leader. However, the Issue price of Rs 1490/share captures the near-term financial performance. We expect IPL to report Rev/EBITDA/PAT to grow at a CAGR of 18%/28%/31% respectively. The stock is trading at 65.5x FY23E on our estimates as compared to Asian Paints/Berger Paints' 61.1/73x consensus earnings. Given the sound management and strong growth prospects, we recommend Subscribe.