Shares of Indigo Paints slipped around a per cent on Friday to hit their fresh 52-week low level during intraday deals. The stock fell as much as 0.85 per cent to a day’s low of Rs 1,334.45 on BSE. The decorative paints company’s scrip, however, settled 0.74 per cent lower at Rs 1,336.
Indigo shares cracked 5.98 per cent in five trading sessions. On a year-to-date (YTD) basis, the stock plunged 36.80 per cent.
A total of 8,561 shares changed hands today amounting to a turnover of Rs 1.14 crore. The company’s market capitalisation (m-cap) stood at Rs 6,355.22.
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AK Prabhakar, Head of Capital, IDBI Capital, said, “Difference between the leading player in the segment (Asian Paints) and Indigo Paints is very big. If we look at the revenues, Indigo is relatively weaker in enamels than its peers. The share price witnessed a decline after the IPO (initial public offering). As of now, the stock still looks overpriced.”
The scrip has tanked 43 per cent from its 52-week high level of Rs 2,345, hit in November last year. Indigo had issued shares at a price range of Rs 1,490 in IPO.
A R Ramachandran from Tips2trades said, “Despite decent Q2 FY23 (2022-23) results and steady fundamentals, volatility in crude oil prices has led to Indigo paints slightly underperforming compared to its peer group in terms of stock price returns this year. Rs 1,330 remains very strong support and investors can accumulate around these levels for a target Rs 1,380-1,450 in the near term.”
He also stated that “a close below Rs 1,330 on a daily basis can lead to Rs 1,240 in the near term.”
The company posted a net profit of Rs 37.1 crore for the September quarter, a jump of over 274 per cent on-year, as against Rs 13.5 crore reported in the same period last year. Revenue during Q2 came in at Rs 242.6 crore, up 23.7 per cent from a year ago.
Brokerage view
Nuvama Institutional Equities remained positive on Indigo’s ability to improve its presence across markets. The brokerage retained a ‘Buy’ call with a target price of Rs 2,220.
Kotak Institutional Equities placed this stock at Rs 1,475; while JM Financial put it at Rs 1,680.
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Meanwhile, Indian equity benchmarks extended their fall for the second straight session today, dragged by automobile, pharma and energy stocks.
