Multibagger stock ideas: Indigo Paints Stock: Multibagger in 2025?

The Indian stock market has seen a strong bull run in recent years, but paint sector stocks have remained largely ignored. While big names like Asian Paints once dominated the conversation, a lesser-known but fast-growing player — Indigo Paints Ltd — is quietly catching up.

In this article, we’ll explore whether Indigo Paints stock can become a multibagger in 2025, supported by solid financials, improving market sentiment, and macroeconomic trends.

                                           

🧪 Why Indigo Paints Deserves Your Attention

Unlike many competitors, Indigo Paints has shown consistent revenue and profit growth in a challenging environment. It’s also one of the few paint companies with a fresh brand image, thanks to its association with MS Dhoni as brand ambassador and increasing visibility in retail markets across India.

📌 Stock Price Snapshot:

As of 28-July-2025, Indigo Paints closed at Rs.1,144.50 on NSE.

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📈 Indigo Paints: Financial Performance

Let’s take a closer look at the company’s numbers:

🔹 Revenue Growth

• Indigo Paints achieved a 17% revenue growth in 2020, outperforming major peers like Asian Paints, Berger Paints, Kansai Nerolac, and Akzo Nobel — all of which saw revenue declines due to the pandemic.

• Revenue growth has continued since then, supported by premium product offerings.

🔹 Profit Growth

• Over the past 5 years, Indigo Paints delivered a CAGR of 41% in profit.

• Even in the last 3.5 years, the company maintained 27.5% profit growth — showing resilience.

🔹 ROA & ROE

• ROA improved from 11.33% in 2020 to 12.16% in 2024.

• ROE stands at 16.24% currently, and though it was higher (26.74%) in 2020, there's strong potential to bounce back.

🔹 Valuation

• The stock is trading at a P/E ratio of 48, which is slightly high, but still reasonable when compared to Asian Paints.

• With rising margins and market share, the valuation may justify itself if growth sustains.

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🎯 Indigo Paints Share Price Targets

🔸 Short-Term Price Targets (2025)

For traders and swing investors, here are potential resistance levels:

• Target 1: 1,385rs

• Target 2: 1,450rs

• Target 3: 1,5105rs

• Target 4: 1,550rs+

Stoploss (Closing Basis): 1,405.80rs or 1,392rs

🔸 Long-Term Price Targets

Indigo Paints benefits from:

• Low debt and strong balance sheet

• Festive and marriage season demand

• Increased housing activity and real estate growth

• Softening crude oil prices (a major input cost)

🎯 Bullish Long-Term Targets (2025-2026):

1,880rs – 2,000rs+

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🛠️ Why Indigo Paints Could Be a Multibagger in 2025

✅ Strong retail distribution

✅ Trusted brand with MS Dhoni’s endorsement

✅ Growing demand from tier-2 and tier-3 cities

✅ Focus on premium and innovative paint products

✅ Debt-free operations and efficient cash flow management

All these factors align with what smart investors look for in a potential multibagger stock.

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🔗 Also Read:

• Top Indian IPOs Backed by Foreign Investors in 2025 — What They Know That You Don’t

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❓ FAQs

Is Indigo Paints a good stock for long-term investment?

Yes, Indigo Paints has strong fundamentals, growing market share, and a debt-free profile, making it a promising long-term pick.

What is the risk in investing in Indigo Paints?

High valuation and stiff competition from Asian Paints and Berger Paints remain key risks.

Who is the brand ambassador of Indigo Paints?

Former Indian cricket captain MS Dhoni is the brand ambassador.

Why are paint stocks expected to rise in 2025?

Rising real estate demand, festive season, and lower input costs like crude oil are driving optimism in paint sector stocks.

Piyush Sharma

Qualifications: MBA (India), MBA (Australia), Master of Professional Accounting (Australia).

18+ years in the Indian stock market and running this website for 15+ years. Founder of PS International Group and Hamarijeet.com — popular for study-visa guidance, career help, government schemes, jobs and digital product updates.

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