Indigo Paints hits 52-week low; here’s why

The shares of Indigo Paints plunged as much as 10% to hit a 52-week low at ₹1,343 after 3.97% or 19 lakh shares of the company traded hands on the Bombay Stock Exchange (BSE). As many as 21 lakh shares or 4.4% equity traded hands on the National Stock Exchange. Following this, shares of the company have nearly halved from its 52-week high of ₹2,397. 

During the session, the shares of Indigo Paints opened lower at ₹1,351 from its previous closing price of ₹1,496. On Wednesday, the shares of Indigo Paints surged as much as 7.3% to hit an intraday high of ₹1,450. Following the trade, the shares plunged 0.59% to hit a 52-week low of ₹1,343. In the past three months, the stocks of Indigo Paints have declined by 7.23%. The market capitalisation of the company has declined to ₹6,802 crore. The company hit a 52-week high of ₹2,397.

The development comes days after reports emerged that Venture Capital firm Sequoia Capital sold 3.3% equity stake in the company via a block deal worth ₹283 crore on November 9. As per information available in the Bombay Stock Exchange, Sequoia Capital held 14.81% of the company. The deal is fixed at a base price of ₹1,314 per share for a total offer of 1.56 million shares. 

The company made its stock market debut on February 2, 2021, and hit a 52-week high of ₹2,397 on November 8, last year. Last week, the company reported an increase in consolidated net profit by 173.5% at ₹37.09 crore year-on-year (YoY) in the July to September quarter as against ₹13.55 crore in the same period last year. The company’s revenue from operations witnessed a growth of 24% at ₹242.61 crore in the July to September quarter as against ₹196.11 crore in the same period last year.

The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) surged as much as 44.47% at ₹33.77 crore in the September quarter as against ₹23.38 crore in the same period last year. 

“The Company clocked a robust growth of 23.71% despite extended monsoons during the quarter. While the Gross margin was flat compared to Q2FY22, EBITDA margin and PAT margin showed a sharp uptick to 13.92% (11.92% in Q2 FY22) and 15.09% (6.80% in Q2 FY22) respectively,” the company said in a statement.

On a sequential basis, the company’s revenue surged 9.4% quarter-on-quarter (QoQ) as against ₹22.44 crore, whereas its net profit surged 86.2% as against ₹19.91 crore in the April to June quarter this year.

Meanwhile, for the half year ended September 30, 2022, net revenue from operations witnessed a surge of 32.51% at ₹466.60 crore as against ₹352.13 crore in the corresponding period of the previous year. EBITDA for the first six months of FY22 stood at ₹69.05 crore as against ₹43.54 crore in the corresponding period of the previous year representing an increase of 58.59%. Moreover, net profit for the half year ended September 30, 2022, stood at ₹57.00 crores as against ₹25.16 crores in the corresponding period of the previous year representing an increase of 126.59 %.