Hold Indigo Paints; target of Rs 1710: Asit C Mehta

Asit C Mehta recommended hold rating on Indigo Paints with a target price of Rs 1710 in its research report dated November 13 2024.

Broker Research

November 13, 2024 / 14:50 IST

Hold

26 Aug, 2025 12:21

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Asit C Mehta report on Indigo Paints

Indigo Paints reported revenue of Rs 2,995 mn in the quarter, a growth of 7.4% YoY, but a decline of 3.7% QoQ. Revenue was in line with our estimate. It continued to report betterthan-industry growth for the fifth consecutive quarter. EBITDA was at Rs 415 mn, which was lower by 1.5% YoY and 12.4% QoQ. EBITDA was 5.8% lower than our estimate. EBITDA margin contracted by 124 bps YoY/ 137 bps QoQ. The margin was ~90 bps lower than our estimate due to gross margin pressure, partly offset by a decline in other expenses as % of sales. PAT was 2.3% lower than estimated at Rs 226 mn and declined by 10.6% YoY/ 13.6% QoQ.

Outlook

We value the company based on 41x (from 39x earlier, as we now factor in some of the impact in the estimates) its Sep-26E EPS of Rs 41.7 and arrive at a price target of Rs 1,710 (unchanged). With an upside potential of 14.1%, we retain our ‘Hold’ rating for the shares of Indigo Paints.

For all recommendations report, click here