Unlocking Huge Growth: Analyst Reveals Massive Price Target for Sirca Paints!

Industrial Goods/Services

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Updated on 13 Nov 2025, 06:25 am

Choice Institutional Equities has released a positive report on Sirca Paints India Limited, emphasizing its strategic collaboration with European wood coating specialist SIRCA S.P.A. The report indicates that Sirca Paints is well-placed to benefit from the substantial growth potential in India's premium wood coatings market. This market is currently valued at INR 100 billion as of FY25 and is expected to expand at a Compound Annual Growth Rate (CAGR) exceeding 10% over the next 5 to 10 years.

For Sirca Paints, Choice Institutional Equities forecasts impressive CAGRs for revenue, EBITDA, and Profit After Tax (PAT) between FY25 and FY28, ranging from 27% to 30%. The company is trading at valuation multiples of approximately 18 times FY28 Enterprise Value to EBITDA (EV/EBITDA) and 26 times FY28 Price to Earnings (P/E), which the report deems reasonable given the growth prospects.

Using a Discounted Cash Flow (DCF) based valuation approach, the report sets a base case target price of INR 625 per share. An upside scenario suggests a fair value of INR 800 per share, with a 20-25% probability, while a downside scenario estimates a fair value of INR 360 per share, with a 15-20% probability.

Impact This report is likely to influence investor sentiment towards Sirca Paints India Limited, potentially driving its stock price towards the target price if market conditions are favorable. It may also draw attention to the wood coatings sector, encouraging further investment and analysis within this segment of the Indian industrial goods market. The company's strong growth forecast and market positioning make it a key player to watch. Rating: 8/10

Difficult Terms: * CAGR (Compound Annual Growth Rate): The average yearly growth rate of an investment over a period longer than one year, smoothing out volatility. * EV/EBITDA (Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization): A valuation ratio used to assess the total value of a company, including debt and cash, relative to its operating profit. * P/E (Price to Earnings ratio): A valuation ratio that compares a company's current share price to its per-share earnings. * DCF (Discounted Cash Flow): A valuation method that estimates the value of an investment based on its expected future cash flows, discounted to their present value. * Target Price (TP): The price at which an analyst or broker expects a stock to trade in the future.