indigo Paints stock: can it become multibagger stock

 Paint sector companies have not performed well in the bull run of Indian stock market. Many Investors are still waiting for their price targets in Paint companies stocks. Today, we will discuss one paint company who is looking highly undervalued because this company has strong market presence as well as brand value.  Indigo Paints stock has given close at 1450.50 rs on 30-Aug-2024.

There are many Paints companies listed into Indian stock market out of which it is not easy to pick one company which can give multibagger returns in the company months and years. Couple of years back, There was only one name of Paint Company which was coming into the Investors and analysts mind i.e Asian Paints ltd but today will not discuss about this company.

We will discuss about the “Indigo Paints ltd”. This company stock has strong potential for giving multiple returns in the company days. Ex captain of Indian cricket team “MS Dhoni” is brand ambassador of Indigo Paints.

If you will visit to Paint companies stores near to your location then many dealers are suggesting Indigo Paints due to its premium quality paint.  Let us check the Financial performance of Indigo Paints.

Financial Performance of Indigo Paints as compared to its peer companies:

Indigo Paints financial performance to its main competitors in the Indian paint industry is as follow:

Revenue Growth

Indigo Paints had the highest revenue growth around 17% in the year 2020 compared to its peer companies like  Asian Paints, Berger Paints, Kansai Nerolac and Akzo Nobel all these companies  saw revenue declines of 9%  to 22% in 2020 due to the pandemic.

After this slow down, Paint companies had shown good growth and Indigo Paint has also improved its Performance.

 Profit Growth

In the last 5 years, Indigo Paints delivered a strong profit growth of nearly 41% CAGR. In comparison, the company's profit growth was 27.5% over the last 3.5 years.

 Return on Assets (ROA) and Equity (ROE)

Indigo Paints' ROA was 11.33% in 2020 which has now increased and in the year 2024, ROA is at 12.16% .The company' ROE is around 16.24% which is expected to improve because in the year 2020, Company ROE was 26.74%.

Valuations

Indigo Paints' stock is trading at a P/E ratio of 48 which still not too bad as compared to its peer companies. Indigo Paints has delivered strong revenue and profit growth, its operating margins and valuation are on the lower side compared to the industry leaders.

What is the short term Price Targets of Indigo Paints?

As per Our research, Indigo Paint is portfolio stock but for short term traders and investors we have tried our level best for giving best price targets of Indigo paints stock.

Closing price: Indigo Paints stock was at 1450.50rs(30-Aug-2024).

Stoploss: 1405.80 or 1392rs closing basis.

Price Targets: 1485rs, 1510rs, 1535rs, 1550rs+

What are the long term price Targets of Indigo Paints?

In the long term, we are bullish on Indigo paint stock. Demand in the paint industry will increase in the company months. Previously Crude price was also down so paint companies will get benefit of this. Demand into the housing sector is also increasing.  Festival season is going to start in India so Demand for paint products always is on higher side in these months. Marriage season is also getting start in India and people like to paint their houses before marriage. There are many other factors which will attract big investors for making investment in Indigo paints stock. Company has debt-free balance sheet and increasing market share gains in some product categories are allowing us to give Price target of 1980rs to 2100rs.  We are very bullish on indigo paints stock for long term point of view.

Also Read: Targets Hit in kotak mahindra bank stock 

Disclaimer: Please do your own research before investing in any stock. We are publishing our personal view on Particular stock. The stock we recommend, we may have personal interest in it and we are holding it too.