Check Before You Invest : SIRCA Paints India Ltd

BSE: 543686 NSE: SIRCA ISIN: INE792Z01011

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does SIRCA Paints India Ltd belong to?

SIRCA Paints India Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is SIRCA Paints India Ltd a good quality company?

SIRCA Paints India Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is SIRCA Paints India Ltd undervalued or overvalued?

SIRCA Paints India Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is SIRCA Paints India Ltd a good buy now?

SIRCA Paints India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of SIRCA Paints India Ltd?

SIRCA Paints India Ltd revenue growth is 20% for FY-2025, which is below its 5-year CAGR of 22.6%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of SIRCA Paints India Ltd?

SIRCA Paints India Ltd Return on capital employed is 18.54% for FY-2025, which is in line with its 5-year historical median of 18.54%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of SIRCA Paints India Ltd?

SIRCA Paints India Ltd Return on Asset is 11.76%, which is in line with its 5-year historical median of 11.76%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of SIRCA Paints India Ltd?

SIRCA Paints India Ltd Return on equity is 14.92% for FY-2025, which is in line with its 5-year historical median of 14.92%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of SIRCA Paints India Ltd?

SIRCA Paints India Ltd Cash conversion cycle is 134 days, in line with its 5-year historical median of 130 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.9	0.89
ROE	14.92	14.92
ROCE	18.54	18.54
Cash Conversion Cycle	134 days	130 days

Q.6 Gross Profit margin of SIRCA Paints India Ltd?

SIRCA Paints India Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.4% for FY-2025, which is below its 5-year median of 21%, indicating decreasing margins.

Q.7 Operating Profit Margin of SIRCA Paints India Ltd?

SIRCA Paints India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.13% for FY-2025, which is below its 5-year median of 19.41% indicating decreasing margins.

Q.8 Net Profit Margin of SIRCA Paints India Ltd?

SIRCA Paints India Ltd Net Profit Margin is 13.13% for FY-2025, is below with its 5-year median of 13.86%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	19.4	21
Operating Profit Margin	18.13	19.41
Net Profit Margin	13.13	13.86

Q.9 Debt to Equity ratio of SIRCA Paints India Ltd?

SIRCA Paints India Ltd Debt-to-Equity ratio is 0.14, which is lower with the industry average of 0.17, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of SIRCA Paints India Ltd?

SIRCA Paints India Ltd Debt to cash flow from operations is 0.92, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of SIRCA Paints India Ltd?

Promoters hold 65.19% of the SIRCA Paints India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of SIRCA Paints India Ltd vs industry peers?

SIRCA Paints India Ltd revenue CAGR is 22.60%, compared to the industry median CAGR of 12.68%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	20	12.7
Gross Profit Growth	-4	17.9
Operating Profit Growth	-2.9	15.5
Net Profit Growth	-3.9	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.9	0.81
ROE	14.92	2.6
ROCE	18.54	3.8
Cash Conversion Cycle (days)	134.17	61

Valuation & price assessment

Q.1 Stock return of SIRCA Paints India Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 4.44% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	4.4%	12.1%	51.1%

Q.3 Valuation ratios of SIRCA Paints India Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	39.17	41.03	33.44
Price to Book	5.26	6.23	1.58
Price to Sales	5.24	6.43	2.20
EV to EBITDA	25.12	26.78	14.05

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