Paints and Coatings industry –The paints and coatings segment of India which includes both decorative and industrial segments was valued at USD 1340 crores and is estimated to reach USD 3170 crores by FY-33 at Compounded Annual Growth Rate of 8.75%. The increasing population of country and shifting of people towards city has led to increase in demand of paints and coatings in various sectors. The growth in urban areas such as Smart Cities Mission and Housing for all encourage construction activities developing amazing opportunity for the paint and coating industry. Moreover, the automotive industry also contributes to development of paints industry. The demand of auto sector is rising and increasing after sales service for different car, it is projected to scale the demand for specialised paints and coatings. On other side, construction sector has seen amazing growth due to urbanisation, increase in infrastructure growth and government initiatives.
Construction chemicals – The Indian Construction Chemicals occupies 3rd rank in terms of profit and growth. The market size of Indian construction chemicals is projected to reach USD 5.02 billion by 2030 and is projected to increase at CAGR of 7.24% between 2024 to 2030. Construction chemicals have occupied highest market share in commercial sector. A huge range of construction chemicals is used in commercial buildings due to higher densities and complex designs. On the other side, waterproofing chemicals are consistently used in the residential sector which pushes construction chemical market.
Waterproofing chemicals – The waterproofing chemicals sector of Indian has observed amazing growth led by increasing urbanisation and increasing requirement of tough construction solutions. Waterproofing chemicals play very important role in construction sector as the Indian climate is humid and it is important to protect buildings from monsoons and damage due to water. The market size of Indian waterproofing chemicals is projected to hit USD 1.81 billion by 2030 increasing at CAGR of 7.44%. The government has mandated use of waterproofing chemicals in construction industry due to rise in infrastructure has led to growth in this segment. Moreover, proper research and development has brought unique techniques in waterproofing technologies in India. These includes amazing materials such as liquid-applied membranes and crystalline waterproofing.
Decorative coatings – The current market size of decorative coatings is Rs 70,000 crores and is forecasted to reach Rs 159,000 crores by 2032. The market can be divided into two parts organized and unorganised sectors. In 2023, out of total decorative coatings market organized sector made contribution of 77% equal to Rs 54,000 crores. It is estimated that this sector will rise by 9.8% CAGR to cross Rs 125,000 crores by 2032. Furthermore, the Indian unorganized sector includes over 2200 small and medium companies which contributes 23% of market share. The revenue generated by companies ranges from Rs 1 crore to 1000 crores. the unorganized decorative coatings market fulfill the requirements of regional areas.
As an investor it is very important to understand the business of company and its detail information such as market size, industry, promoter, shareholding pattern, price forecast, revenue, net profit.
Indigo Paints Ltd – Key points
Name of promoter
Hemant Jalan
Established
2000
Industry
Decorative paints, construction chemicals, waterproofing chemicals
Industry experience
23 years
Headquarters
Pune, Maharashtra
Employees
1,112
Product portfolio
Indigo Paints Ltd – Statistics
Market cap
Rs. 7,464 crores
ROCE
23.2%
ROE
17.5%
Manufacturing plants
5
Active dealers
18000+
Stock P/E
51.9
Book value
Rs. 192
About Indigo Paints Ltd
Indigo Paints Ltd was established in year 2000 and is top leader in paint industry. The headquarters of the company is situated in Pune, Maharashtra. In the beginning stage, company manufactured cement paints at economical prices. Moreover, it has increased its product portfolio and diversified its business and includes wide variety of decorative paints. The company’s amazing distribution channel assures widespread products available in whole India. The company operates 3 manufacturing plants located in Kochi (Kerala), Jodhpur (Rajasthan), Puddukkottai (Tamil Nadu). Indigo paints is actively focusing on research and development to present creative products. The company’s strong and complex operational strategy has encouraged it to stay ahead of competition and efficiently manage challenges in its growth.
The company pays attention on building a unique product portfolio to fulfill the requirements of customers, raise their market share, and perform better than its competitors. The company’s unique approach to develop amazing specialty paints permits the business to enter into new sectors and build a strong position in current markets. The company is dependent on its creative ability to strengthen its presence as top player in Indian paint sector. In an unconventional strategy, the company has commenced its operations in Tier-3 and Tier-4 cities. The company has built its presence at the base of pyramid, the company has begun paying attention to development of Tier-1 and Tier-2 cities.
The purpose of the company is to enter into developing areas with increase in disposable incomes and rise in requirement of quality paints. This strategy leads to the development of huge distribution channel, marketing ideas targeting audience, and building good quality paints for buyers looking for budget. The company is also connected with painters and contractors, guiding them on use of product, providing amazing benefits to suggest and utilize Indigo’s products, and scale acceptance of brand in new markets. This amazing strategy results in increase in geographical presence and developing strong relationships with regional stakeholders to scale Indigo Paint’s scale in India.
The company is building strong team to reach more distributors and dealers which will lead to brand visibility and availability of products. Moreover, through customized brand promotion and reaching out social media influencers, the company aims to reach targeted audience. The company has increased customer interaction through targeted ads, useful content creation, and engaging tools such as virtual paint colour visualization. This multiple strategy encourages company to develop brand awareness, develop interest, and generate sales for Indigo paints.
The company has made investment in manufacturing plant which is fully atomatic and will manage material to smoothly scale production capacity. This supports the company to fulfill requirement by minimizing production costs. Moreover, the company is taking benefits of its presence and strong supply chain to setup new manufacturing plants. This will minimize expenses related to transportation and increase delivery timelines to fulfill incrasing local demands. The company is ready to manage future growth and manage proper competition by reducing costs and strengthen its position in market.
The purpose of company is to scale its business by adjacencies, by entering into infrastructure industry with high scope. The company acquired Apple Chemie India Pvt. Ltd., the company is doing business of decorative paint sector such as waterproofing chemicals, construction chemicals. The company has generated new sources of income and to capitalize on synergies with current operations. At Indigo Paints, the company has always done extraordinary job in terms of action and this approach has encouraged us to perform better in highly competitive sector. The portfolio of company includes unique products that fulfills the requirement of customers. The innovative engine of company consistently produces results. The company is the first to present mnay category products in decorative paint sector in India. The innovative products include Waterproof exterior laminate, Dirtproof, Interior and Exterior Acrylic Laminate, PU Super Glass Enamel which provide huge value.
In the year 2000, the company started its operations by focusing on single product : cement paint. At present, the company is one of the rapidly growing decorative paints fulfilling the demand of both exterior and interior applications. The growth of company depends on consitent improvement led by best quality products. The product portfolio includes wide range of products such as tile coat emulsions, metallic emulsions, bright ceiling coat emulsions, and floor coat emulsions. the company recently entered into construction chemicals and waterproofing segment (WPCC) by acquiring Apple Chemie India Pvt. Ltd.
The company has develop a strong base of business, the company encourages unique development of product, while maintaining sense of curiosity. Indigo Paints is niche based company and it stands out different from its competitors. The company has managed good track record for launching category-creator products in decorative paints sector. The company developed its business by first focusing on Tier-3 and Tier-4 cities and then scaling in Tier-1 and Tier-2 cities. The company developed healthy relations with channel partners.
Indigo paints gives importance to its team members. The workforce of company is productive and has been playing key role for huge success. In FY-24, the company increased its sales team to enhance influencer interaction. The purpose of company is to develop strong leadership while taking care of workforce. The company has made strong commitment to provide best compensation and packages with benefits, lot of opportunities for professional growth and improvement in career. The company gives importance by providing training and impart knowledge to employees by ensuring that they have tools to excel in their field. The safety of employees is first priority at Indigo Paints. The extensive health and safety program goes which integrates regular training, modern equipment, and strict rules to assure safe environment.
Promoter of the company
The Chairman and MD of the company is Mr. Hemant Jalan who has deep experience of 22 years in paint sector. He has been entrpreneur for entire life. He is promoter of the company. He previously was connected with AF Ferguson and company and Vedanta Group of Industries.
Indigo Paints Ltd – Revenue and net profit
Particulars
FY-24 ( In crores)
Sales
1,255
Expenses
1,022
EBIDTA
233
Other income
13
interest
2
depreciation
46
Profit before tax
198
-Tax (%)
(25%)
Net profit
149
EPS in Rs.
31.22
Shareholding pattern
Promoters
53.94%
FIIs
8.28%
DIIs
1.07%
Public
36.73%
Indigo Paints Ltd – Watch Full video
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Indigo Paints Ltd Share Price Target – 2024 to 2040
Year
Minimum price (Rs)
Average price (Rs)
Maximum price (Rs)
2024
1567
1656
1745
2025
1760
1888
2015
2026
2037
2225
2412
2027
2431
2672
2913
2028
2950
3263
3575
2029
3608
3767
3926
2030
4017
4126
4234
2040
16070
16597
17123
Indigo Paints Ltd Share Price Target – 2024
If market observes bearish sentiments, the minimum projected price is anticipated to hit Rs 1567. The average trading price is projected to hit Rs 1656 at the end of the year. If market faces bullish signals, the maximum forecasted price is expected to reach Rs 1745. The brand and marketing technique play key role in building consumer awareness. The company is increasing its sales team to develop strong relations with customers. Moreover, the company is actively engaging with customers through social media taking benefit of technology to collaborate with audience.
Indigo Paints Ltd Share Price Target – 2025
If market faces bearish sentiments, the minimum projected price is expected to reach Rs 1760. The average trading price is projected to hit Rs 1888 at the end of the year. If market observes bullish sentiments, the maximum projected price is anticipated to reach Rs 2015. The company is looking to scale its business by stepping into construction chemicals and waterproofing solutions shows huge opportunity to diversify sources of income. The company is planning to enter into infrastructure sector with help of its subsidiary company Apple Chemie India Pvt. Ltd. This strategy encourages us to capitalize on increasing infrastructure growth in the country which leads to sustainable growth in business.
Indigo Paints Ltd Share Price Target – 2026
If market observes bearish sentiments, the minimum predicted price is anticipated to hit Rs 2037. The average trading price is projected to touch Rs 2225 at the end of the year. If market observes bullish sentiments, the maximum forecasted price is projected to hit Rs 2412. The company has made amazing investments in manufacturing plants to fulfill the requirements. A plant based on water with storage system that is fully automatic with capacity of more than 50,000 KLPA was setup in Pudukkotai in Tamil Nadu. Thw construction process is ongoing of two more plants – a water based production capacity of 90,000 KLPA and solvent based production capacity of 12,000 KLPA located at Jodhpur factory.
Indigo Paints Ltd Share Price Target – 2027
If market faces bearish signals, the minimum projected price is anticipated to reach Rs 2431 at the end of the year. The average trading price is projected to hit Rs 2672 at the end of the year. If market observes bullish sentiments, the maximum projected price is anticipated to hit Rs 2913 at the end of the year. The technology of company plays key role in its day-to-day business operations. Indigo paints has made huge investment to update its technology infrastructure, ensure proper checking of operations and increase shareholders value. The investments include executing tools based on tech such as SAP system, manage processes related to raw material purchase, finished goods, ensure payment of supplier and vendor.
Indigo Paints Ltd Share Price Target – 2028
If market observes bearish sentiments, the minimum projected price is anticipated to hit Rs 2950. The average trading price is projected to hit Rs 3263 at the end of the year. If market observes bullish signals, the maximum forecasted price is anticipated to hit Rs 3575. The company is focusing to take care of communities by providing services. The company has taken reponsibility to provide educational support to over 300 girls around Pune. In kochi, the company has collaborated with Cancure foundation to offer free dialysis services to underprivileged people.
Indigo Paints Ltd Share Price Target – 2029
If market observes bearish sentiments, the minimum projected price is anticipated to reach Rs 3608. The average trading price is forecasted to hit Rs 3767 at the end of the year. If market observes bullish sentiments, the maximum estimated price is projected to touch Rs 3575. The company has created Decor club specially for painters and contractors whoc can smoothly manage registration, take control of trade promotions, and loyalty programs with app of Indigo Decor club which provides smooth experience through scanning barcode, receiving reward, and collection of points.
Indigo Paints Ltd Share Price Target – 2030
If market observes bearish sentiments, the minimum projected price is anticipated to reach Rs 4017. The average trading price is projected to hit Rs 4126 at the end of the year. If market observes bullish signals, the maximum forecasted price is anticipated to touch Rs 4234. The purpose of company is to grow online presence and develop strong connection with customers by improving digital interaction. The digital presence is consistently growing and the company stays ahead by taking benefits of online platforms.
Indigo Paints Ltd Share Price Target – 2040
If market observes bearish signals, the minimum projected price is expected to touch Rs16070. The average trading price is projected to hit Rs 16,597 at the end of the year. If market observes bullish signals, the maximum projected price is estimated to touch Rs 17,123. The mission of company is to deliver best quality, long durability, and eco-friendly products. The company has made strong commitment to reduce adverse impact on environment. The main aim of company is to increase use of green energy, executing effective waste management practices.
FAQs
Q1) Who is the owner of Indigo Paints Ltd?
Ans – The owner of Indigo Paints Ltd is Mr. Hemant Jalan.
Q2) Is Indigo Paints Ltd a debt free company?
Ans – Yes,Indigo Paints Ltd is a debt-free company. The company has zero-loan.
Q3) What is the turnover of Indigo Paints Ltd?
Ans – The turnover of the Indigo paints in FY-24 was Rs 1,255 crores which was increased from Rs 1,023 crores in FY-23.
Q4) What is PE ratio of Indigo Paints Ltd?
Ans – The PE ratio of Indigo Paints Ltd is 51.9 times.
Q5) When was Indigo Paints Ltd listed?
Ans – The Indigo Paints Ltd was listed on 2nd February, 2021.
Q6) Is Indigo Paints Ltd a profitable company?
Ans –Yes,Indigo Paints Ltd has a net profit of Rs 148 crores in FY-24 which was increased by 12.12% compared to FY-23 where net profit was Rs 132 crores.
Q7) Which sector is Indigo Paints Ltd involved?
Ans – The company is engaged in manufacturing of decorative paints, construction chemicals, waterproofing chemicals.
Q8) Is Indigo Paints Ltd a good stock to buy?
Ans –Yes,Indigo Paints Ltd is a good company to buy for long term investment. The turnover of the company in year 2013 was Rs 47 crores which reached to Rs 1,255 crores in FY-24. The sales of the company showed consistent growth. The company has zero-debt.
