Is Indigo Paints overvalued or undervalued?

Jun 09 2025 04:24 PM IST
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As of December 31, 2024, Indigo Paints is considered undervalued with a PE ratio of 36.10, an EV to EBITDA of 20.91, and a ROCE of 22.02%, making it a more attractive investment compared to peers like Asian Paints and Berger Paints, despite a year-to-date return of -22.47%.
As of 31 December 2024, Indigo Paints has moved from a fair to a very attractive valuation grade. The company is currently considered undervalued. Key ratios include a PE ratio of 36.10, an EV to EBITDA of 20.91, and a ROCE of 22.02%.

In comparison to its peers, Indigo Paints has a lower PE ratio than Asian Paints Ltd., which stands at 54.97, and Berger Paints India Ltd., which has a PE of 57.52, indicating that Indigo Paints is trading at a more favorable valuation relative to these competitors. Despite a challenging year-to-date return of -22.47% compared to the Sensex's 5.58%, the current valuation metrics suggest that Indigo Paints presents a compelling investment opportunity.
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