Indigo Paints Ltd (INDIGOPNTS) AI Stock Analysis

• Market Cap: ₹52.30B
• Dividend Yield: 0.32%
• Average Volume (3M): 4.23K
• Price to Earnings (P/E): 37.0
• Beta (1Y): 0.66
• Revenue Growth: 0.75%
• EPS Growth: -0.74%
• Country: IN
• Employees: 1,112
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 5.50
• Shares Outstanding: 47,634,710
• 10 Day Avg. Volume: 4,969
• 30 Day Avg. Volume: 4,232
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹1,272.00
• Price Target Upside: 15.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ₹1,272.00 ▲(15.86% Upside)

Indigo Paints Ltd has a strong financial foundation with robust profitability and low leverage. However, the stock's technical indicators suggest mixed momentum, and the high P/E ratio indicates potential overvaluation. The low dividend yield further impacts its attractiveness for income investors.

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, profitability, and a solid balance sheet with low leverage. While cash flow generation is positive, 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	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.41B	10.73B	13.00B	9.01B	7.20B
Gross Profit	4.45B	4.78B	6.11B	3.86B	3.42B
EBITDA	2.52B	1.90B	2.51B	1.46B	1.25B
Net Income	1.42B	1.32B	1.47B	840.48M	708.50M
Balance Sheet
Total Assets	14.10B	10.62B	12.70B	9.20B	8.11B
Cash, Cash Equivalents and Short-Term Investments	2.63B	1.81B	2.00B	1.88B	3.10B
Total Debt	272.70M	118.55M	210.29M	124.36M	87.80M
Total Liabilities	3.80B	2.85B	3.68B	2.70B	2.48B
Stockholders Equity	10.31B	7.76B	9.02B	6.50B	5.63B
Cash Flow
Free Cash Flow	664.82M	-831.44M	466.42M	-555.92M	553.06M
Operating Cash Flow	2.03B	1.16B	1.51B	651.91M	1.21B
Investing Cash Flow	-1.78B	-844.05M	-1.52B	-691.64M	-3.18B
Financing Cash Flow	-207.02M	-200.62M	-230.28M	-52.93M	2.36B

Indigo Paints Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1097.85
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDIGOPNTS, the sentiment is Negative. The current price of 1097.85 is below the 20-day moving average (MA) of 1176.47, below the 50-day MA of 1161.27, and below the 200-day MA of 1201.19, indicating a bearish trend. The MACD of -12.17 indicates Positive momentum. The RSI at 34.78 is Neutral, neither overbought nor oversold. The STOCH value of 14.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	70 Outperform	₹52.30B	36.96		0.32%	0.75%	-0.74%
SUDARSCHEM	52 Neutral	₹113.13B	63.99		0.32%	31.78%	-84.27%
Sector *	44 Neutral	C$923.76M	-8.68	-0.23%	2.69%	24.53%	-41.45%