Indigo Paints Ltd (INDIGOPNTS) AI Stock Analysis

• Market Cap: ₹54.91B
• Dividend Yield: 0.3%
• Average Volume (3M): 3.84K
• Price to Earnings (P/E): 38.8
• Beta (1Y): 0.66
• Revenue Growth: 0.75%
• EPS Growth: -0.74%
• Country: IN
• Employees: 1,112
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals - Specialty
• EPS (TTM): 5.50
• Shares Outstanding: 47,634,710
• 10 Day Avg. Volume: 2,701
• 30 Day Avg. Volume: 3,842
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,259.00
• Price Target Upside: 9.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ₹1,259.00 ▲(9.85% Upside)

Indigo Paints Ltd's overall stock score is driven by strong financial performance, with robust revenue growth and profitability. However, technical indicators suggest potential short-term weakness, and the valuation appears high, which could limit upside potential.

Indigo Paints Ltd Business Overview & Revenue Model

Company Description

Indigo Paints Ltd (INDIGOPNTS) is an Indian company engaged in the manufacturing and sale of decorative paints. Established in 2000, the company has rapidly grown to become one of the leading paint manufacturers in India. Indigo Paints offers a wide range of products including emulsions, enamels, wood coatings, distempers, primers, putties, and cement paints, catering to diverse consumer needs across residential, commercial, and industrial sectors.

How the Company Makes Money

Indigo Paints Ltd generates its revenue primarily through the sale of its various decorative paint products. The company has a robust distribution network that includes both direct sales to large institutional clients and a network of retail dealers and distributors, which enables it to reach a broad customer base across India. A significant portion of its revenue comes from its innovative and differentiated product offerings, such as metallic emulsions and tile coat emulsions, which allow the company to command premium pricing. Additionally, Indigo Paints engages in strategic marketing and brand-building initiatives, leveraging advertising and promotional activities to enhance brand visibility and consumer demand. Partnerships with dealers, applicators, and construction companies also contribute to its revenue streams by facilitating product reach and adoption in new and existing markets.

Indigo Paints Ltd Financial Statement Overview

Summary

Indigo Paints Ltd exhibits strong financial performance with robust revenue growth, high profitability margins, and a solid balance sheet with low leverage. The cash flow position is positive, though there is room for improvement in free cash flow conversion.

Income Statement

Indigo Paints Ltd has demonstrated robust revenue growth with a Revenue Growth Rate of 3.10% in the latest year. The company maintains a strong Gross Profit Margin of 33.18% and a healthy Net Profit Margin of 10.57%. The EBIT Margin is 13.05%, and the EBITDA Margin stands at 18.80%, indicating efficient operational management. These metrics suggest a strong income statement performance with consistent profitability and growth.

Balance Sheet

The balance sheet of Indigo Paints Ltd shows a solid financial position with a healthy Equity Ratio of 73.06% and a low Debt-to-Equity Ratio of 0.03. The company also achieved a commendable Return on Equity (ROE) of 13.76%, reflecting effective utilization of shareholder equity. These indicators highlight strong financial stability and low leverage, though the growth in stockholder's equity has moderated.

Cash Flow

Indigo Paints Ltd has shown an impressive Free Cash Flow Growth Rate of 42.52% in the latest year. The Operating Cash Flow to Net Income Ratio is 1.43, indicating strong cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio of 0.47 suggests potential constraints in converting income into free cash flow due to high capital expenditures. Overall, the cash flow position is positive with room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	13.38B	13.41B	13.00B	10.73B	7.20B	9.01B
Gross Profit	5.39B	4.45B	6.11B	4.78B	3.42B	3.86B
EBITDA	2.47B	2.52B	2.51B	1.90B	1.25B	1.46B
Net Income	1.38B	1.42B	1.47B	1.32B	708.50M	840.48M
Balance Sheet
Total Assets	0.00	14.10B	12.70B	10.62B	8.11B	9.20B
Cash, Cash Equivalents and Short-Term Investments	2.07B	2.63B	2.00B	1.81B	3.10B	1.88B
Total Debt	0.00	272.70M	210.29M	118.55M	87.80M	124.36M
Total Liabilities	-9.38B	3.80B	3.68B	2.85B	2.48B	2.70B
Stockholders Equity	9.38B	10.31B	9.02B	7.76B	5.63B	6.50B
Cash Flow
Free Cash Flow	0.00	664.82M	466.42M	-831.44M	553.06M	-555.92M
Operating Cash Flow	0.00	2.03B	1.51B	1.16B	1.21B	651.91M
Investing Cash Flow	0.00	-1.78B	-1.52B	-844.05M	-3.18B	-691.64M
Financing Cash Flow	0.00	-207.02M	-230.28M	-200.62M	2.36B	-52.93M

Indigo Paints Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1146.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDIGOPNTS, the sentiment is Positive. The current price of 1146.1 is above the 20-day moving average (MA) of 1127.31, below the 50-day MA of 1163.87, and below the 200-day MA of 1162.19, indicating a neutral trend. The MACD of -7.43 indicates Negative momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 84.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:INDIGOPNTS.

Indigo Paints Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDIGOPNTS	71 Outperform	₹54.91B	38.81		0.30%	0.75%	-0.74%
Sector *	62 Neutral	$10.28B	6.21	0.76%	2.84%	3.10%	-36.03%
SIRCA	―	₹25.43B	47.94		0.32%	―	―
SUDARSCHEM	52 Neutral	₹112.17B	63.43		0.32%	31.78%	-84.27%