Indigo Paints Ltd (INDIGOPNTS) AI Stock Analysis

• Market Cap: ₹57.24B
• Dividend Yield: 0.3%
• Average Volume (3M): 3.25K
• Price to Earnings (P/E): 39.7
• Beta (1Y): 0.81
• Revenue Growth: 0.14%
• EPS Growth: 2.95%
• Country: IN
• Employees: 1,112
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 5.30
• Shares Outstanding: 47,675,663
• 10 Day Avg. Volume: 4,721
• 30 Day Avg. Volume: 3,255
• PEG Ratio: -9.49
• Price to Book (P/B): 4.47
• Price to Sales (P/S): 3.43
• P/FCF Ratio: 69.27
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹1,295.00 ▲(10.66% Upside)

Indigo Paints Ltd's strong financial performance is the primary driver of its overall score, supported by robust revenue growth and profitability. However, the technical analysis presents mixed signals with potential overbought conditions, and the valuation suggests the stock may be overvalued. The absence of significant earnings call insights or corporate events leaves the financial performance as the dominant factor in the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing resilience against economic fluctuations.

Cash Flow Generation

Strong cash flow generation supports reinvestment in growth opportunities and provides a buffer for future uncertainties.

Negative Factors

Earnings Growth

Negative earnings growth can signal operational challenges or increased costs, potentially impacting future profitability.

Free Cash Flow Conversion

Inefficient conversion of income to free cash flow may limit the company's ability to finance new projects or return capital to shareholders.

Equity Growth Moderation

Slower equity growth could indicate limited reinvestment or challenges in increasing shareholder value, affecting long-term growth prospects.

Indigo Paints Ltd Business Overview & Revenue Model

Company Description

Indigo Paints Limited engages in the manufacture and sale of decorative paints in India and internationally. It offers interior and exterior emulsions, enamels, putties and primers, and sleek wood coatings, as well as other products, including leakproof emulsions, aluminium paints, stone and tiles paints, roof paints, and stainers. The company was incorporated in 2000 and is headquartered in Pune, India.

How the Company Makes Money

Indigo Paints generates revenue primarily through the sale of its diverse range of paint products. The company has established a robust distribution network that includes a mix of direct sales, retail outlets, and online platforms, which helps it reach a wide customer base across India. Key revenue streams include sales from its various product categories, such as emulsions, enamels, and primers. Additionally, Indigo Paints leverages strategic partnerships with distributors and retailers to enhance its market presence. The company also invests in marketing and branding initiatives to drive customer awareness and loyalty, contributing to its overall earnings.

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, although 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 2022	Dec 2021
Income Statement
Total Revenue	13.39B	13.41B	13.00B	10.73B	9.01B	7.20B
Gross Profit	5.75B	4.45B	6.11B	3.52B	3.86B	3.42B
EBITDA	2.51B	2.52B	2.52B	1.90B	1.46B	1.25B
Net Income	1.41B	1.42B	1.47B	1.32B	840.48M	708.50M
Balance Sheet
Total Assets	0.00	14.10B	12.70B	10.62B	9.20B	8.11B
Cash, Cash Equivalents and Short-Term Investments	2.63B	2.63B	2.00B	1.81B	1.88B	3.08B
Total Debt	0.00	272.70M	210.29M	118.55M	124.36M	87.80M
Total Liabilities	-10.31B	3.80B	3.68B	2.85B	2.70B	2.48B
Stockholders Equity	10.31B	10.31B	9.02B	7.76B	6.50B	5.63B
Cash Flow
Free Cash Flow	0.00	664.82M	466.42M	-831.44M	-555.92M	553.06M
Operating Cash Flow	0.00	2.03B	1.51B	1.16B	651.91M	1.21B
Investing Cash Flow	0.00	-1.78B	-1.52B	-844.05M	-691.64M	-3.18B
Financing Cash Flow	0.00	-207.02M	-232.36M	-200.62M	-52.93M	2.36B

Indigo Paints Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1170.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1170.25 is below the 20-day moving average (MA) of 1182.62, below the 50-day MA of 1200.69, and above the 200-day MA of 1113.37, indicating a neutral trend. The MACD of -2.32 indicates Negative momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 78.35 is Neutral, 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	74 Outperform	₹57.24B	39.73	―	0.30%	0.14%	2.95%
SIRCA	64 Neutral	₹26.67B	44.74	―	0.30%	28.27%	23.68%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SUDARSCHEM	49 Neutral	₹74.19B	133.90	―	0.46%	159.81%	-63.02%

Indigo Paints Ltd Corporate Events

Indigo Paints Faces GST Demand Order on IPO Expenses

Indigo Paints Limited has received a demand order from the Assistant Commissioner of State Tax in Pune regarding GST credit availed on IPO-related expenses, amounting to INR 19.26 crores including interest and penalty. The company plans to appeal this order with the Goods and Service Tax Appellate Tribunal, and there is no immediate impact on its financial or operational activities.

Indigo Paints Releases Financial Results for September 2025

Indigo Paints Limited announced the approval of its unaudited consolidated and standalone financial results for the quarter and half-year ending September 30, 2025, during a board meeting held on November 6, 2025. The results, reviewed by Price Waterhouse Chartered Accountants LLP, reflect the company’s financial performance and are available on their website, indicating transparency and compliance with SEBI regulations.