Why is Indigo Paints Ltd ?
1
The company is Net-Debt Free
2
Poor long term growth as Net Sales has grown by an annual rate of 8.81% and Operating profit at 9.94% over the last 5 years
3
Flat results in Jun 26
- ROCE(HY) Lowest at 17.66%
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.92 times
4
With ROE of 13, it has a Attractive valuation with a 4.7 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 3.65%, its profits have risen by 16.9% ; the PEG ratio of the company is 2
5
High Institutional Holdings at 30.97%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.56% over the previous quarter.
How much should you hold?
- Overall Portfolio exposure to Indigo Paints should be less than 10%
- Overall Portfolio exposure to Paints should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paints)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Indigo Paints for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Indigo Paints
3.67%
0.10
36.08%
Sensex
-9.15%
-0.67
13.52%
Quality key factors
Factor
Value
Sales Growth (5y)
8.81%
EBIT Growth (5y)
9.94%
EBIT to Interest (avg)
78.14
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.27
Sales to Capital Employed (avg)
1.33
Tax Ratio
25.71%
Dividend Payout Ratio
11.76%
Pledged Shares
0
Institutional Holding
30.97%
ROCE (avg)
23.46%
ROE (avg)
14.35%
Valuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
44
Price to Book Value
4.69
EV to EBIT
24.10
EV to EBITDA
18.71
EV to Capital Employed
6.05
EV to Sales
3.48
PEG Ratio
1.96
Dividend Yield
0.44%
ROCE (Latest)
23.07%
ROE (Latest)
12.96%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Movement
3What is working for the Company
PAT(Latest six months)
At Rs 99.42 cr has Grown at 20.04%
-4What is not working for the Company
ROCE(HY)
Lowest at 17.66%
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.92 times
Loading Valuation Snapshot...
Here's what is working for Indigo Paints
Profit After Tax (PAT) - Latest six months
At Rs 99.42 cr has Grown at 20.04%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Indigo Paints
Debtors Turnover Ratio- Half Yearly
Lowest at 4.92 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 10.19 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






