Indigo Paints Ltd - Stock Valuation and Financial Performance

BSE: 543258 | NSE: INDIGOPNTS | Paints | Small Cap

Indigo Paints Share Price

1,257.15 -14.20 -1.12%
as on 28-Mar'24 15:02

DeciZen - make an informed investing decision on Indigo Paints

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Indigo Paints stock performance -

mw4me loader
P/E Ratio (SA):
42.10
Market Cap:
6,054.3 Cr.
52-wk low:
981.1
52-wk high:
1,700

Is Indigo Paints Ltd an attractive stock to invest in?

1. Is Indigo Paints Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Indigo Paints Ltd is a average quality company.

2. Is Indigo Paints Ltd undervalued or overvalued?

The key valuation ratios of Indigo Paints Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is Indigo Paints Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Indigo Paints Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Indigo Paints:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Indigo Paints Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 8.7%-29.7%-6.9%-9.8%4%16.8%22.7%18.1%14%18.6%-
Value Creation
Index
-0.4-3.2-1.5-1.7-0.70.20.70.30.00.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 63.890.21242894115366257239061,0731,214
Sales YoY Gr.-41.4%37.9%132.6%42.2%30.3%16.7%15.8%25.3%18.5%-
Adj EPS 0.1-2.8-2.1-5.61.29.416.514.917.727.630.2
YoY Gr.--2391.7%NANANA682.5%75.2%-9.5%18.6%56.3%-
BVPS (₹) 1.69.445.134.13544.161.1118.4136161180.2
Adj Net
Profit
0.4-7.9-6-15.93.427.147.770.883.9131144
Cash Flow from Ops. 3.8-5.711.5-25.92751.672.312165.2116-
Debt/CF from Ops. 3.8-0.50.5-1.31.31.20.7000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 36.9%21.2%19.8%18.5%
Adj EPS 83%87.2%18.8%56.3%
BVPS67.3%35.7%38.2%18.4%
Share Price - - -18.2% 27.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
8.2-49.2-7.5-12.92.920.427.718.613.818.417.7
Op. Profit
Mgn %
4.7-8.1-4.5-0.75.810.114.616.91516.918.3
Net Profit
Mgn %
0.6-8.7-4.8-5.50.85.17.69.89.312.211.8
Debt to
Equity
3.20.10.10.30.30.40.3000-
Working Cap
Days
10812813811713010710010010510378
Cash Conv.
Cycle
33-552022102-71537

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 17.70%

Sales growth is growing at healthy rate in last 3 years 19.77%

Sales growth is good in last 4 quarters at 17.34%

No data to display

Latest Financials - Indigo Paints Ltd.

Standalone Consolidated
TTM EPS (₹) 30.2 -1.2
TTM Sales (₹ Cr.) 1,214 135
BVPS (₹.) 180.2 0
Reserves (₹ Cr.) 811 808
P/BV 7.05 0.00
PE 42.10 0.00
From the Market
52 Week Low / High (₹) 981.05 / 1700.00
All Time Low / High (₹) 981.05 / 3348.00
Market Cap (₹ Cr.) 6,054
Equity (₹ Cr.) 47.6
Face Value (₹) 10
Industry PE 46.4

Management X-Ray of Indigo Paints:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Indigo Paints

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales64901242894115366257239061,073
Operating Expenses 6197130291387482534601770892
Manufacturing Costs111427411011131418
Material Costs364749139194299322377514595
Employee Cost 581023293642485673
Other Costs 184258102123137159163186206
Operating Profit 3-7-6-2245491123136182
Operating Profit Margin (%) 4.7%-8.1%-4.5%-0.7%5.8%10.1%14.6%16.9%15.0%16.9%
Other Income 011102241110
Interest 2103456411
Depreciation 11114171720243134
Exceptional Items 0100-100000
Profit Before Tax 1-7-6-182346798114156
Tax 000-20720273024
Profit After Tax 0-7-6-16327487184132
PAT Margin (%) 0.6%-7.7%-4.8%-5.5%0.6%5.0%7.7%9.8%9.3%12.3%
Adjusted EPS (₹)0.1-2.4-2.1-5.60.99.316.514.917.727.7
Dividend Payout Ratio (%)12%0%0%0%0%0%0%0%17%13%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 428132116118145196563647766
Share Capital 01347474747484848
Reserves 426129697198148515600719
Minority Interest0000000000
Debt143634325239000
Long Term Debt600892725000
Short Term Debt83625232515000
Trade Payables14273785107136139186201211
Others Liabilities 232112224049637185
Total Liabilities 35611962462793734228119201,062

Fixed Assets

Gross Block131516108129165232304339382
Accumulated Depreciation323173417325586118
Net Fixed Assets1012139195149201249253265
CWIP 0102241351251
Investments 011241515202150173132
Inventories912154851697795118118
Trade Receivables15263378104104104121172200
Cash Equivalents 1838514625810049
Others Assets017371312355348
Total Assets 35611962462793734228119201,062

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 4-611-2627527212165116
PBT 1-7-6-182346798114156
Adjustment 10117232224262535
Changes in Working Capital 1017-2520-714-48-50
Tax Paid 00000-4-12-16-26-24
Cash Flow From Investing Activity -5-10-12315-23-63-61-318-69-84
Capex -5-3-1-8-25-63-61-66-121-197
Net Investments 0-7-1250000-25246110
Others 00323200063
Cash Flow From Financing Activity 21611315-719-17236-5-20
Net Proceeds from Shares 00110002230000
Net Proceeds from Borrowing 2-6000220-3600
Interest Paid -2-10-3-4-4-5-300
Dividend Paid 000000000-14
Others 123318-3-1-14-25-5-6
Net Cash Flow 0115-37-639-912
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)8.33-44.39-7.69-14.022.6123.6731.4219.1413.8918.67
ROCE (%)13-24.92-6.73-10.4421.2232.1225.119.0622.06
Asset Turnover Ratio2.441.880.971.311.561.831.751.321.21.27
PAT to CFO Conversion(x)INFN/AN/AN/A91.931.51.70.770.88
Working Capital Days
Receivable Days66838770816455515254
Inventory Days38423939443738383734
Payable Days120161240159181149156157138126

Indigo Paints Ltd Stock News

Indigo Paints Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Indigo Paints on 28-Mar-2024 15:02 is ₹1,257.2.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 15:02 the market cap of Indigo Paints stood at ₹6,054.3.
The latest P/E ratio of Indigo Paints as of 28-Mar-2024 15:02 is 42.10.
The latest P/B ratio of Indigo Paints as of 28-Mar-2024 15:02 is 7.05.
The 52-week high of Indigo Paints is ₹1,700 and the 52-week low is ₹981.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Indigo Paints is ₹1,214 ( Cr.) .

About Indigo Paints Ltd

Indigo Paints was originally incorporated as ‘Indigo Paints Private Limited’ at Pune, Maharashtra as a private limited company under the Companies Act, 1956, pursuant to the certificate of incorporation dated March 28, 2000 issued by the Registrar of Companies, Maharashtra at Pune. Subsequently, the company was converted into a public limited company and consequently the name of the company was changed to ‘Indigo Paints Limited’ and a fresh certificate of incorporation dated August 20, 2020 was issued by the Registrar of Companies, Maharashtra at Pune.

Indigo Paints is the fastest growing amongst the top five paint companies in India. It is the fifth largest company in the Indian decorative paint industry in terms of its revenue from operations for Fiscal 2020. It has achieved this position in a highly competitive Indian decorative paint industry on the back of its multi-pronged approach. This includes introducing differentiated products to create a distinct market in the paint industry, building brand equity for its primary consumer brand of ‘Indigo’, creating an extensive distribution network across 27 states and seven union territories as of September 30, 2020, and installing tinting machines across its network of dealers. To create demand for its differentiated products, it initially tapped into Tier 3, Tier 4 Cities, and Rural Areas, where brand penetration is easier and dealers have greater ability to influence customer purchase decisions.

The company subsequently leveraged this network to engage with dealers in Tier 1 and Tier 2 Cities and Metros as well. It engaged Mr. Mahendra Singh Dhoni, a sportsperson with pan-India appeal, as its brand ambassador, to enhance its brand image amongst end customers. The company concentrated these branding efforts on its differentiated products and then leveraged these efforts to increase distribution and sale of its complete range of decorative paint products. It subsequently introduced tinting machines in its target markets to increase sales of emulsion paints, which require in-shop tinting.

Business area of the company

The company manufactures a complete range of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties and cement paints. It also identify potential product needs from customers and introduce differentiated products to meet these requirements, and create a distinct market for its products. For instance, it is the first company to manufacture and introduce certain differentiated products in the decorative paint market in India, which includes its Metallic Emulsions, Tile Coat Emulsions, Bright Ceiling Coat Emulsions, Floor Coat Emulsions, Dirtproof & Waterproof Exterior Laminate, Exterior and Interior Acrylic Laminate, and PU Super Gloss Enamel (together, Indigo Differentiated Products). These products are differentiated based on the end-use they cater to, as well as added properties that they possess.

Awards and Accreditations

  • 2019: The company’s quality management systems with respect to its manufacturing facilities at Jodhpur (Rajasthan), Kochi (Kerala) and Pudukkottai (Tamil Nadu) have been certified to conform to EN ISO 9001:2015 pursuant to a certificate dated September 16, 2019, subject to annual audits conducted by independent consultants.
  • 2019: Each of its manufacturing facilities at Jodhpur (Rajasthan), Kochi (Kerala) and Pudukkottai (Tamil Nadu), has been certified to conform to EN ISO 14001:2015 pursuant to a certificate dated September 16, 2019, for its environment management systems, subject to annual audits conducted by independent consultants.
  • 2019: Each of its manufacturing facilities at Jodhpur (Rajasthan), Kochi (Kerala) and Pudukkottai (Tamil Nadu), has been certified to conform to ISO 45001:2018 for its occupational health & safety management systems pursuant to a certificate dated September 16, 2019, subject to annual audits conducted by independent consultants.

Major events and milestones

  • 2000: Incorporation of the company
  • 2001: The company began manufacturing of cement paints in Jharkhand and later shifted to Jodhpur, Rajasthan
  • 2007: The company moved to its own factory space in Jodhpur, Rajasthan
  • 2007: The company had by now broadened its product portfolio to include water-based paints
  • 2010: The company had expanded its geographical footprint to 11 states in India by now
  • 2011: The company implemented SAP
  • 2013: The company carried out a rebranding exercise and created its new logo and packaging design
  • 2013: The company began advertising in newspapers and hoardings
  • 2015: Sequoia IV invested approximately Rs 300 million in the company
  • 2016: SCII V invested approximately Rs 900 million by in the company
  • 2016: The company acquired Hi-Build Coatings Private Limited; a Kerala based paint company
  • 2016: Sequoia IV invested approximately Rs 200 million in the company
  • 2018: The company intensified television advertising
  • 2018: The company expanded its geographical footprint to other states
  • 2019: The company appointed Mahendra Singh Dhoni, as its brand ambassador
  • 2019: The company introduced a new model of tinting machines across India
  • 2019: The company engaged in BTL activities like painter meets, dealer boards and in-shop branding, and also intensified dealer loyalty programmes
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