Indigo Paints Share Price Target 2023, 2024, 2025, 2030  | Share Price Prediction Indigo Paints.

indigo paints share price target

Indigo Paints seems available at at attractive valuations. Shall I invest in this stock? When shall I sell it to make maximum gain?

Doing some simple calculations can help us answer these questions.

Buy Range:-  Rs. 1,000       Target:- Rs. 10,000 by 2030

Indigo Paints Share Price Today

Indigo Paints Share Price Target can be predicted scientifically by calculating its future Sales and Net Profit the company is going to make.

YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
2022167520942512
2023201025123015
2024241230153618
2025289436184341
2026347343415210
2027416852106252
2028500162527502
2029600275029003
20307202900310803
Indigo Paints Share Price Target
graph showing Indigo Paints Share Price Target
Indigo Paints Share Price Target

Indigo Paints can turn into a multi-bagger because its f powerful business, good management, strong financials, and debt freedom.

Indigo Paints is undergoing huge capex without taking many loans. Its sales will increase considerably as soon as the capex becomes operational.

Calculating Indigo Paints Share Price Target

We are not predicting the Share Price Target of Indigo Paints meaninglessly, but here we will take some assumptions to calculate future sales the company can so. Using these sales, we will calculate EPS, M Cap, and the Share Price.

Assumed Sales Growth

·       Most businesses grow at some rate. Their sales grow by some percent every year. With the growth in sales, there follows growth in profits as well.

·       Such businesses are in their growth phase.

·       If the sales remain the same year per year then they are stagnant businesses.

·      Indigo Paints has shown a CAGR Sales of 37% in last 10 years, 26% in 5 years and 19% in 3 years.

·       Fixed Assets grew from 13 Cr. to 91 Cr. from Mar’16 to Mar’17. Sales also grew from 90 to 124 to 289 in the years 2015, 2016, and 2017 respectively.

·       With every increase in fixed assets there followed an increase in sales.

·       There is a CWIP of 175 Cr. in line which means the sales will grow further.

·       Taking reference from the above table let’s assume the sales of Indigo Paints will grow at least by 20% every year.

·   Assumed Sales Growth = 20%

Read :- Jyoti Resins and Adhesives Share Price Target

Net Profit Margin

·       Once the sales are done company needs to deduct the expense, interest, depreciation, and taxes to get Net Profits. These expenses, interest, depreciation, and taxes keep changing YoY.

·       So, we need to calculate the Net Profit Margins of Indigo Paints.

·       For this we can take an average of the last 5 years of Net Profit Margin.

·        Net Profit Margin = (Net Profit X 100) / Sales

Mar-19Mar-20Mar-21Mar-22TTM
Sales5366257239061,036
Net Profit27487184118
Net Profit Margin5810911
Calculating Net Profit Margin

·       Average Net Profit Margin is 9%.

·       This means whatever sales the company does, around 9% of it comes back to the company as its Net Profit.

PE

1.   Base Case – In the stock market the prices of the stock keep going up and down for the same company with the same financials.

Share Prices are also dependent on market emotions which can be tracked by the PE it is giving to the company.

PE of Indigo Paints has varied from 41 to 162. Median PE being 112.

Let’s take PE= 100 when the market is neither bullish nor bullish regarding this company.

  1. Bear Case – When the market is pessimistic about the company’s growth it will give it a lower PE. Let’s take 80 as PE when the market is bearish for Indigo Paints. You can take any PE from Median PE to extremely lower PE i.e. between 41 to112
  1. Bull Case – Sometimes good news regarding companies make the market bullish and it starts giving it a higher PE. Let’s take 120 as PE of Bull Case.

             Base Case –  100

             Bear Case –    80

             Bull Case –   120

Number of Shares

The company has 4.76 Cr. of shares.

Calculating Indigo Paints Projected Sales and Net Profit

·       We will be using Assumed Sales growth to calculate Future Sales or Projected Sales and Use Net Proft Margins To calculate Future or Projected Profits.

  • Projected Sales (Next Year)= Sales Current Year + X% of Sales Current Year,         where X= Assumed Sales Growth.

Eg:-  Projected Sales 2023 = Sales 2022 + 15% Sales 2022.

  • Projected Profit = Projected Sales X Net Profit Margin
  • Historic data can be fetched from www.screener.com
S.no.YearProjected Sales ( In Cr.)Projected Net Profit ( In Cr.)
12022906100
220231087120
320241305144
420251566172
520261879207
620272254248
720282705298
820293246357
920303896429
Calculating Future / Projected Sales and Profits of Indigo Paints
Graph showing projected sales and profits of Indigo Paints.

Indigo Paints Share Price Target Base Case

• Now we have the Future Sales and Profits of the company. But the share price doesn’t need to keep going up in the same way the Profit is going up.

• In the stock market the prices of the stock keep going up and down for the same company with the same financials.

• Share Prices are also dependent on market emotions which can be tracked by the PE it is giving to the company.

• It is the case when the share market has neutral emotions about Indigo Paints.

Market Capitalization  = Projected Profit X PE

Share Price = Market Capitalization / No. of Shares

S.no.YearPE (base case)Mcap ( Base Case) ( In Cr.)Share price (Base Case)
1202210099662094
22023100119592512
32024100143513015
42025100172213618
52026100206654341
62027100247995210
72028100297586252
82029100357107502
92030100428529003

Indigo Paints Share Price Target Bear Case

·       When the share market would be negative regarding Indigo Paints, these would be the share prices.

S. No.YearPE (Bear Case)Mcap (Bear Case) ( In Cr.)Share Price (Bear Case)
120228079731675
220238095672010
3202480114812412
4202580137772894
5202680165323473
6202780198394168
7202880238075001
8202980285686002
9203080342827202

Indigo Paints Share Price Target Bull Case

An enthusiastic, optimistic share market would give Indigo Paints the following share prices.

S.no.YearPE (Bull Case)Mcap (Bull Case) ( In Cr.)Share Price (Bull Case)
12022120119592512
22023120143513015
32024120172213618
42025120206654341
52026120247995210
62027120297586252
72028120357107502
82029120428529003
920301205142210803

Indigo Paints Share Price Target 2023

·       Indigo Paints is the fourth-largest decorative paint company in India.

·       It has the first mover advantage as it is the first company to launch differentiated paint products like metallic emulsion, tile coat emulsion, dirt-proof and waterproof exterior laminate, etc.

·       The company gets half of its revenue from South India specifically Kerala, so there is a lot to grow.

·       The company has a ROCE of around 18%. The company has pricing power in its hands.

YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
2023201025123015

·       It is virtually a debt-free company with borrowings of Rs 12 Cr. against a Cash equivalent of Rs. 28 Cr.

·       The company has three manufacturing facilities in Rajasthan, Kerala, and Tamil Nadu.

·       The company has shown a profit growth of 58.6% in FY’22.

Indigo Paints Share Price Target 2024

YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
2024241230153618

·       The company doubled its putty plant capacity in Rajasthan in FY’21.

·       Expansion always leads to increased sales.

·   None of its Promoter’s shares are pledged.

·   The company has increased its sales every quarter and every year.

·   Although the profits vary because of variations in the crude oil prices.

·   The company is working at an Operating Margin of 15%.

Indigo Paints Share Price Target 2025

·       The company has planned to invest Rs. 150 Cr. in the expansion of its Tamil Nadu plant which will benefit the balance sheet.

·       It has already acquired 17 Acres of land for expansion.

·       The company is spending a lot on advertisements to create a brand name.

·       The company has shown a CAGR Sales of 37% and a CAGR Profit of 62% in the last 10 years.

·       Growth in the company and share price can be seen from here very well.

YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
2025289436184341

Indigo Paints Share Price Target 2030

YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
20307202900310803

·  The company has managed to increase its reserves from 3 Cr. from Mar’11 to 648 Cr. by Sep’22.

·  There have been negligible borrowings from the company. This means the company is using its own money to expand.

·  The Cashflows have mostly been positive.

·  The company is in very strong hands. 54% with Promoters, 10% with FII, 3% DII, 25% HNIs

Indigo Paints Technical Chart

Indigo Paints Technical Chart
Indigo Paints Technical Chart

Conclusion

·      Currently Indigo Paints is trading at its lifetime low and a golden opportunity for investors.

There is a whole lot of growth scope in the paint industry in India. The middle class which used white washes earlier is moving towards decorative paints.

·       Indigo Paints has proved its worth over time. With the constant increase in sales and expansions, management efficiency could be seen.

·       Expansion and debt freedom tell a lot about the company’s governance.

·       A lot of potentials is seen in Indigo Paints. It is a share that can turn into a multi-bagger and manyfold its investor’s money.

·       Long-term investment in this company can prove wonders for its investors.

Indigo Paints,

Lux Industries,

Vaibhav Global.

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Disclaimer- All investments and trading in the stock market involve risk. Any decision to place a trade in the financial markets, including trading in stock should only be made after thorough research. Trading strategies or related information mentioned in the article is for informational purposes only. Use your due diligence before investing. We are not SEBI registered analysts. These are just predictions. They may or may not be true.

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