Buy This Small Cap Consumer Durable Stock For 33% Upside, Says Sharekhan

Sharekhan has come up with an investment idea in Indigo Paints Ltd., a small-cap stock having a market capitalisation of Rs 4,997.12 crore. The brokerage has assigned a "Buy" on the stock with a target price of Rs 1,400/share. It is showing 33% upside potential, considering the given target price and the current market price. The stock is engaged in the Paints industry. Check below to know more:

Stock Outlook & Performance

The share price of Indigo Paints is trading at Rs 1,057/share. It jumped 4.23% as compared to its previous close of Rs 1,011.05 apiece. The stock's 52 week low is Rs 991.25/share, and 52 week high is Rs 1,746/share, respectively. The stock got listed on 2 February 2021.

Its share value has fallen 66.11% since the listing date. It gained 1.45% in the past 1 week. However, it has fallen 1.67% in 1 month and 19.64% in 3 months, respectively. In 1 year it has fallen 34.53%.

View: Maintain Buy with a revised PT of Rs. 1,400

According to the brokerage, IPL is focusing on gaining share in tier-1 and tier-2 cities where it has a better dealer presence. The company's revamped strategy is showing good results and will help the company to achieve growth ahead of the industry over the next two to three years. Further, the company is planning to enter the construction chemical and waterproofing segment, which has seen good demand in the recent past. Focused strategies will help IPL to achieve consistent revenue growth of 24% over FY2022-FY2025. This along with OPM expansion will enable PAT to post a 38% CAGR over FY2022-FY2025. "The stock has corrected by 41% in the past one year and is currently trading at 31.8x/24x its FY2024/FY2025E EPS. We maintain our Buy rating on the stock with a revised price target (PT) of Rs. 1,400," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.