Mar'25 View on Indigo Paints Ltd

Indigo Paints Ltd manufactures and sells decorative paints. From its peak of 3,300 the stock has fallen below 1,000 level and now looks to consolidate and move again above 1500 on back of following inputs. • Consolidated revenue declined 3.2% yoy to Rs342.6 cr (in line). • EBIDTA margin declined 90 bps yoy to 16.7% (a 175-bps beat). • Apple Chemie delivered 20.6% yoy growth in Q3. • Salience of differentiated products on a 9M basis has been stable. • Indigo Paints reported a 3.2% yoy decline in revenues, in line with the industry. • We expect EPS to grow by 3.4% in FY26E & by 12.9% in FY27E. • Stock is currently trading at 36.5x P/E FY27E earnings. • We value INDIGOPN using Discounted Cash Flow (DCF) Methodology. • Our cautious stance is based on the rise in competitive intensity.