Indigo Paints Ltd - Stock Valuation and Financial Performance

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

Indigo Paints Share Price

1,441 9.80 0.68%
as on 04-Dec'24 13:51

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):
48.08
Market Cap:
6,817.5 Cr.
52-wk low:
1,253.2
52-wk high:
1,720

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 % 13%-24.9%-6.7%-10.4%4%21.2%32.1%25.1%19.1%22.1%-
Value Creation
Index
0.0-2.9-1.5-1.8-0.70.61.40.90.40.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 63.890.21242894115366257239061,0731,290
Sales YoY Gr.-41.4%37.9%132.6%42.2%30.3%16.7%15.8%25.3%18.5%-
Adj EPS 0.1-2.8-2.1-5.61.29.416.514.917.727.629.8
YoY Gr.--2391.7%NANANA682.5%75.2%-9.5%18.6%56.3%-
BVPS (₹) 1.69.445.134.13544.161.1118.4136161200
Adj Net
Profit
0.4-7.9-6-15.93.427.147.770.883.9131142
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 - - -13.3% -4.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
8.2-49.2-7.5-12.92.920.427.718.613.818.416.5
Op. Profit
Mgn %
4.7-8.1-4.5-0.75.810.114.616.91516.918
Net Profit
Mgn %
0.6-8.7-4.8-5.50.85.17.69.89.312.211
Debt to
Equity
3.20.10.10.30.30.40.30000
Working Cap
Days
10812813811713010710010010510381
Cash Conv.
Cycle
33-552022102-71744

Recent Performance Summary

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

Net Profit is growing at healthy rate in last 3 years 18.81%

Sales growth is good in last 4 quarters at 11.66%

Return on Equity has declined versus last 3 years average to 16.50%

Latest Financials - Indigo Paints Ltd.

Standalone Consolidated
TTM EPS (₹) 29.8 29.3
TTM Sales (₹ Cr.) 1,290 1,349
BVPS (₹.) 200 196.9
Reserves (₹ Cr.) 905 890
P/BV 7.16 7.27
PE 48.08 48.77
From the Market
52 Week Low / High (₹) 1253.15 / 1720.00
All Time Low / High (₹) 981.05 / 3348.00
Market Cap (₹ Cr.) 6,817
Equity (₹ Cr.) 47.6
Face Value (₹) 10
Industry PE 51.2

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

Login/Register to view analysis.

Analyst's Notes

Key Ratios of Indigo Paints

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales901242894115366257239061,0731,255
Operating Expenses 971302913874825346017708921,022
Manufacturing Costs1142741101113141828
Material Costs4749139194299322377514595654
Employee Cost 8102329364248567392
Other Costs 4258102123137159163186206248
Operating Profit -7-6-2245491123136182233
Operating Profit Margin (%) -8.1%-4.5%-0.7%5.8%10.1%14.6%16.9%15.0%16.9%18.5%
Other Income 1110224111013
Interest 1034564112
Depreciation 111417172024313446
Exceptional Items 100-1000000
Profit Before Tax -7-6-182346798114156198
Tax 00-2072027302450
Profit After Tax -7-6-16327487184132149
PAT Margin (%) -7.7%-4.8%-5.5%0.6%5.0%7.7%9.8%9.3%12.3%11.8%
Adjusted EPS (₹)-2.4-2.1-5.60.99.316.514.917.727.731.2
Dividend Payout Ratio (%)0%0%0%0%0%0%0%17%13%11%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 28132116118145196563647766902
Share Capital 134747474748484848
Reserves 26129697198148515600719855
Minority Interest0000000000
Debt36343252390000
Long Term Debt008927250000
Short Term Debt36252325150000
Trade Payables273785107136139186201199220
Others Liabilities 3211222404963719699
Total Liabilities 611962462793734228119201,0621,222

Fixed Assets

Gross Block1516108129165232304339382710
Accumulated Depreciation23173417325586118162
Net Fixed Assets12139195149201249253265548
CWIP 10224135125115
Investments 11241515202150173132188
Inventories12154851697795118118166
Trade Receivables263378104104104121172200204
Cash Equivalents 83851462581004933
Others Assets1737131235534868
Total Assets 611962462793734228119201,0621,222

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity -611-2627527212165116152
PBT -7-6-182346798114156198
Adjustment 011723222426253544
Changes in Working Capital 017-2520-714-48-50-32
Tax Paid 0000-4-12-16-26-24-58
Cash Flow From Investing Activity -10-12315-23-63-61-318-69-84-143
Capex -3-1-8-25-63-61-66-121-197-101
Net Investments -7-1250000-25246110-12
Others 0323200063-29
Cash Flow From Financing Activity 1611315-719-17236-5-20-24
Net Proceeds from Shares 01100022300000
Net Proceeds from Borrowing -6000220-36000
Interest Paid -10-3-4-4-5-3000
Dividend Paid 00000000-14-17
Others 23318-3-1-14-25-5-6-7
Net Cash Flow 115-37-639-912-15
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)-44.39-7.69-14.022.6123.6731.4219.1413.8918.6717.82
ROCE (%)-24.92-6.73-10.4421.2232.1225.119.0622.0623.65
Asset Turnover Ratio1.880.971.311.561.831.751.321.21.271.34
PAT to CFO Conversion(x)N/AN/AN/A91.931.51.70.770.881.02
Working Capital Days
Receivable Days83877081645551525448
Inventory Days42393944373838373434
Payable Days161240159181149156157138123117

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 04-Dec-2024 13:51 is ₹1,441.
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 04-Dec-2024 13:51 the market cap of Indigo Paints stood at ₹6,817.5.
The latest P/E ratio of Indigo Paints as of 04-Dec-2024 13:51 is 48.08.
The latest P/B ratio of Indigo Paints as of 04-Dec-2024 13:51 is 7.16.
The 52-week high of Indigo Paints is ₹1,720 and the 52-week low is ₹1,253.2.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Indigo Paints is ₹1,290 ( 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
Read More Read Less
You have 2 views remaining as a Guest User. To get DeciZen Rating of 3,500+ Stocks based on their Quality, Valuation and Price Trend Login Now
© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt. Ltd.