Sirca Paints India Ltd. (SIRCA) AI Stock Analysis

• Market Cap: ₹26.67B
• Dividend Yield: 0.3%
• Average Volume (3M): 33.77K
• Price to Earnings (P/E): 44.7
• Beta (1Y): 0.92
• Revenue Growth: 28.27%
• EPS Growth: 23.68%
• Country: IN
• Employees: 515
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 3.20
• Shares Outstanding: 56,792,800
• 10 Day Avg. Volume: 26,757
• 30 Day Avg. Volume: 33,770
• PEG Ratio: -6.04
• Price to Book (P/B): 3.89
• Price to Sales (P/S): 3.63
• P/FCF Ratio: -25.79
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹516.00 ▲(6.99% Upside)

The overall stock score of 64.1 reflects strong financial performance with revenue growth and a solid balance sheet, but challenges in profitability and cash flow management. Technical indicators show positive momentum, though valuation concerns arise from a high P/E ratio and low dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product offerings, supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio reflects financial stability and reduced risk, providing flexibility for future investments and growth.

Product Innovation

Continued investment in R&D fosters innovation, ensuring the company remains competitive and meets evolving consumer needs.

Negative Factors

Declining Net Profit Margins

Decreasing net profit margins suggest rising costs or inefficiencies, which could impact long-term profitability if not addressed.

Negative Free Cash Flow

Negative free cash flow can strain financial resources, limiting the ability to invest in growth opportunities and manage debts.

Profitability Challenges

Profitability issues may hinder the company's ability to sustain growth and maintain competitive advantages in the long term.

Sirca Paints India Ltd. Business Overview & Revenue Model

Company Description

Sirca Paints India Limited engages in the import and distribution of wood, metal, and glass coatings in India. The company provides wood coatings including wood stains, polyurethane polishes, polyester products, acrylic finishes, UV products, wood fillers, wood care products, handmade effects, special effects, and additives; bicomponent water-borne and solvent-borne pigmented topcoats; paints and coatings for metals used in corrosion protection and artistic applications; and nitrocellulose and melamine coatings and thinners. It also exports its products to Nepal, Bangladesh, and Sri Lanka. Sirca Paints India Limited was incorporated in 2006 and is based in Delhi, India.

How the Company Makes Money

Sirca Paints generates revenue primarily through the sale of its wide array of paint products, including interior and exterior emulsions, wood coatings, and other specialized finishes. The company operates on a B2B and B2C model, targeting not only individual consumers but also builders, contractors, and retailers. Key revenue streams include direct sales through distribution networks, partnerships with home improvement stores, and collaborations with construction firms. Additionally, SIRCA benefits from strategic alliances with international suppliers and manufacturers, enhancing its product offerings and market reach. The company's focus on research and development allows it to introduce innovative products that meet current market trends, thereby driving sales and profitability.

Sirca Paints India Ltd. Financial Statement Overview

Summary

Sirca Paints India Ltd. shows strong revenue growth and a robust balance sheet with low leverage. However, declining net profit margins and negative free cash flow present challenges. The company should focus on improving profitability and cash flow management to sustain its growth trajectory.

Income Statement

Sirca Paints India Ltd. has demonstrated consistent revenue growth with a 5.2% increase in the latest year. The gross profit margin improved significantly to 48%, indicating strong cost management. However, the net profit margin decreased to 13.1% from 16.5% the previous year, suggesting increased expenses or other financial pressures impacting net income.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.14, indicating low financial leverage and risk. The equity ratio is healthy, and the return on equity stands at 14%, reflecting efficient use of shareholder funds. However, the slight decrease in ROE from the previous year suggests a need for improved profitability.

Cash Flow

Operating cash flow is positive, but the company experienced negative free cash flow, indicating potential liquidity challenges. The operating cash flow to net income ratio is close to 1, showing good conversion of income to cash. However, the negative free cash flow to net income ratio highlights the need for better cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.10B	3.74B	3.12B	2.68B	2.00B	1.43B
Gross Profit	1.91B	1.80B	1.04B	1.20B	755.74M	533.78M
EBITDA	798.49M	726.04M	750.35M	665.53M	421.54M	263.18M
Net Income	530.54M	490.57M	514.34M	461.07M	277.23M	165.82M
Balance Sheet
Total Assets	0.00	4.51B	3.51B	3.12B	2.62B	2.55B
Cash, Cash Equivalents and Short-Term Investments	562.03M	562.03M	1.14B	860.00M	826.03M	788.73M
Total Debt	0.00	500.00M	20.00K	3.29M	0.00	131.96M
Total Liabilities	-3.50B	1.01B	422.14M	465.14M	372.20M	531.55M
Stockholders Equity	3.50B	3.50B	3.09B	2.65B	2.25B	2.02B
Cash Flow
Free Cash Flow	0.00	-526.68M	199.21M	-287.79M	130.15M	150.87M
Operating Cash Flow	0.00	542.65M	323.96M	-187.00M	351.59M	192.05M
Investing Cash Flow	0.00	-453.25M	-214.14M	93.76M	-110.55M	148.37M
Financing Cash Flow	0.00	-83.95M	-82.42M	-55.20M	-173.85M	-1.04M

Sirca Paints India Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 482.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SIRCA, the sentiment is Negative. The current price of 482.3 is below the 20-day moving average (MA) of 485.65, below the 50-day MA of 500.17, and above the 200-day MA of 418.61, indicating a neutral trend. The MACD of -3.06 indicates Positive momentum. The RSI at 39.16 is Neutral, neither overbought nor oversold. The STOCH value of 21.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SIRCA.

Sirca Paints India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDIANHUME	68 Neutral	₹21.48B	3.77	―	1.00%	0.25%	452.41%
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%
MOLDTKPAC	59 Neutral	₹19.51B	28.78	―	0.67%	15.51%	7.88%
MANALIPETC	49 Neutral	₹10.11B	20.81	―	0.82%	-2.41%	178.19%
MADRASFERT	48 Neutral	₹13.21B	16.68	―	―	3.38%	0.68%
SHALPAINTS	39 Underperform	₹5.79B	-9.01	―	―	8.89%	24.00%