Indigo Paints Ltd (INDIGOPNTS) AI Stock Analysis

• Market Cap: ₹36.59B
• Dividend Yield: 0.3%
• Average Volume (3M): 3.25K
• Price to Earnings (P/E): 37.5
• Beta (1Y): 1.05
• Revenue Growth: 0.14%
• EPS Growth: 2.95%
• Country: IN
• Employees: 1,112
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 8.45
• 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): 33.71
• Revenue Forecast (FY): ₹13.92B

• Rating: 65 Neutral
• Price Target: ₹816.00 ▼(-30.27% Downside)
• Action: Downgraded Date: 03/10/26
• Date: Action: Downgraded 03/10/26

Strong financial performance and balance-sheet stability support the score, but this is materially offset by very bearish technicals (price below all key moving averages with negative MACD and extremely oversold RSI/Stoch). Valuation adds only modest support given the high P/E and low dividend yield.

Positive Factors

High profitability and margins

Sustained high gross, operating and net margins indicate structural pricing power and efficient cost structure in decorative paints. Durable margins support reinvestment in distribution and product development, provide resilience through demand cycles, and help sustain free cash generation over the next 2–6 months.

Very low leverage and strong balance sheet

Extremely low leverage and a high equity ratio give the company financial flexibility to fund capex, expand the dealer network, or absorb shocks without refinancing stress. A mid-teens ROE shows effective capital use, supporting sustainable investment capacity and risk absorption over the medium term.

Strong cash generation growth

Robust FCF growth and OCF exceeding reported net income reflect high cash quality and operational cash conversion trends. Growing cash generation supports durable funding for manufacturing, logistics and dealer expansion, enabling strategic investments without relying on external financing.

Negative Factors

Weak free cash flow conversion

A low FCF/Net Income ratio suggests a large portion of accounting profits is absorbed by capex or working capital, limiting discretionary cash. If capital intensity or inventory needs persist, this will constrain dividends, buybacks or rapid deleveraging and dampen free-cash availability over months.

Moderation in equity growth

Moderating equity growth may signal slower internal capital accumulation or retained earnings expansion, which can limit self-funded scaling. Over a multi-month horizon, reduced equity growth can constrain capacity additions, geographic expansion, or absorb higher working capital needs without outside capital.

Modest revenue growth

Low single-digit revenue growth limits the pace at which the company can leverage fixed costs and expand margins through scale. Without faster top-line expansion or stronger premiumization, margin and profit growth may be reliant on cost improvements rather than durable volume-driven gains.

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 primarily makes money by selling decorative paint and coating products to the trade channel (dealers/distributors/retailers) and, where applicable, to institutional customers. Revenue is generated from product sales across key categories such as interior emulsions, exterior emulsions, enamels, wood coatings, primers, and wall putty; the mix and pricing are influenced by brand positioning, product differentiation (including specialty offerings), and regional demand. Earnings are supported by (i) volume growth through expansion of the dealer network and geographic reach, (ii) premiumization via higher-value products and new product launches, and (iii) operating leverage from manufacturing and logistics efficiencies as scale increases. Specific details on material partnerships, customer concentration, or channel-wise revenue splits: null.

Indigo Paints Ltd Financial Statement Overview

Summary

Strong overall fundamentals: high profitability (gross margin 33.18%, net margin 10.57%) and solid operating efficiency (EBIT margin 13.05%, EBITDA margin 18.80%). Balance sheet is very stable with low leverage (debt-to-equity 0.03, equity ratio 73.06%) and healthy ROE (13.76%). Cash flow is positive with strong free cash flow growth (42.52%), though free cash conversion is weaker (FCF/NI 0.47).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.51B	13.41B	13.00B	10.73B	9.01B	7.20B
Gross Profit	5.38B	4.45B	6.11B	3.52B	3.86B	3.42B
EBITDA	2.54B	2.52B	2.52B	1.90B	1.46B	1.25B
Net Income	1.44B	1.42B	1.47B	1.32B	840.48M	708.50M
Balance Sheet
Total Assets	14.70B	14.10B	12.70B	10.62B	9.20B	8.11B
Cash, Cash Equivalents and Short-Term Investments	2.58B	2.63B	2.00B	1.81B	1.88B	3.08B
Total Debt	238.12M	272.70M	210.29M	118.55M	124.36M	87.80M
Total Liabilities	4.03B	3.80B	3.68B	2.85B	2.70B	2.48B
Stockholders Equity	10.67B	10.31B	9.02B	7.76B	6.50B	5.63B
Cash Flow
Free Cash Flow	91.54M	664.82M	466.42M	-831.44M	-555.92M	553.06M
Operating Cash Flow	818.94M	2.03B	1.51B	1.16B	651.91M	1.21B
Investing Cash Flow	-869.56M	-1.78B	-1.52B	-844.05M	-691.64M	-3.18B
Financing Cash Flow	-229.59M	-207.02M	-232.36M	-200.62M	-52.93M	2.36B

Indigo Paints Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1170.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 1170.25 is above the 20-day moving average (MA) of 891.08, above the 50-day MA of 1014.72, and above the 200-day MA of 1112.25, indicating a bearish trend. The MACD of -67.76 indicates Positive momentum. The RSI at 11.14 is Positive, neither overbought nor oversold. The STOCH value of 2.78 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	65 Neutral	₹36.59B	37.48	―	0.30%	0.14%	2.95%
SIRCA	64 Neutral	₹24.70B	45.97	―	0.30%	28.27%	23.68%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SUDARSCHEM	49 Neutral	₹64.18B	-16.12	―	0.46%	159.81%	-63.02%

Indigo Paints Ltd Corporate Events

Indigo Paints Posts Q3 FY26 Earnings Call Transcript on Investor Website

Indigo Paints Limited has released the transcript of its Q3 FY26 earnings conference call with analysts and investors, where management discussed the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The company notified the exchanges in compliance with SEBI disclosure regulations and made the earnings call transcript available on its investor relations website, underscoring its focus on transparent communication with the market and stakeholders.