NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Our primary research on comparing cash discount scheme and payment terms of Birla Opus paints with peers reveals:
Most dealers prefer to pay in seven-15 days to avail 5% cash discount offered by leading paint companies. Due to channel financing, dealers pay just ~10% interest cost per annum but still avail 5% cash discount in 15 days.
Dealers have limited space and do not want to hold excess inventory as it results in higher inventory holding cost warehouse rent, pilferage, spoilage, etc.
The 5% cash discount scheme also benefits paint companies as dealers start pushing secondary sales to release the blocked funds. We note BOP is offering credit up to 50 days @2% cash discount compared to maximum 30 days credit offered by peers.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
World Bank Approves $600 Million To Promote Clean Air In Haryana, UP
HCC Share Price Plunges To Over Two-Year Low As High Discount Price For Right Issue Spooks Traders
Motilal Oswal Sees 17% Upside In Global Health, Says Expansion To Drive Long-Term Growth — Check Target Price
Birla Opus Paints CEO Rakshit Hargave Resigns
POPULAR