BSE 500 Stock: Rs. 3.50 Final Dividend Recommended; Buy The Consumer Discretionary Stock?

As a cutting-edge paint company, Indigo Paints is one of the leading competitors in the Indian paint sector. The company has released its financial results for the quarter and year that ended on March 31, 2024, and it has recommended a dividend of Rs 3.50 per share.

Indigo Paints Dividend

The Board of Directors "Recommended payment of final dividend of Rs. 3.50/- (Rupees Three Rupees and Fifty Paisa only) (35%) per equity share of the face value of Rs. 10 (Rupees Ten only) each for the financial year ended March 31, 2024, subject to approval of the shareholders at the ensuing Annual General Meeting ("AGM")," said Indigo Paints in a regulatory filing.

Indigo Paints Financials

On a standalone basis, net revenue from operations for the quarter that ended on March 31, 2024, was Rs. 366.1 crores, up 12.5% from the previous year's equivalent period of Rs. 325.5 crores. EBITDA increased by 14.7% to Rs. 82.3 crores in Q4FY24, from Rs. 71.7 crores in the same period the previous year. The net profit for the quarter that ended on March 31, 2024, was Rs. 53.5 crores, up 10.0% from Q4FY23.

The net revenue from operations for the fiscal year that ended on March 31, 2024, was Rs. 1,254.9 crores, indicating a 16.9% increase over FY23 of Rs. 1,073.3 crores. EBITDA climbed by 28.2% to Rs. 232.7 crores for the fiscal year that ended on March 31, 2024, from Rs. 181.5 crores in FY23. The net profit for FY24 was Rs. 148.7 crores, up 28.6% from Rs. 115.6 crores during FY23.

Indigo Paints Share Price Target

"Indigo Paints Ltd., which recently announced its dividend, is currently in a consolidation phase with its stock price ranging between Rs.1400 and Rs.1350. Since a potential breakout is anticipated, investors are advised to initiate buying positions above Rs.1415, for price targets of Rs.1450 to Rs.1650. Notably, the small-cap stock delivered a negative return of -1.82% in the past year, and its current PE of 46.03, if higher than the sector average of 27.96, suggesting overvaluation. Hence, individuals may hold this stock for 10 to 100 days, and set their stop-loss at Rs.1370 to protect gains," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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