Sirca Paints India (NSEI:SIRCA) - Share price, News & Analysis

SIRCA fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	6/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

SIRCA Stock Overview

Sirca Paints India Limited engages in the import and distribution of wood, metal, and glass coatings in India.

Rewards

Price-To-Earnings ratio (43.4x) is below the Retail Distributors industry average (45.9x)

Earnings are forecast to grow 38.35% per year

Earnings grew by 67.2% over the past year

Risk Analysis

Unstable dividend track record

Sirca Paints India Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sirca Paints India
Historical stock prices
Current Share Price	₹439.15
52 Week High	₹625.00
52 Week Low	₹283.00
Beta	0.35
1 Month Change	-2.03%
3 Month Change	-4.34%
1 Year Change	35.50%
3 Year Change	122.54%
5 Year Change	n/a
Change since IPO	299.71%

Recent News & Updates

Jan 14

Sirca Paints India (NSE:SIRCA) Could Be Struggling To Allocate Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst...

Shareholder Returns

	SIRCA	IN Retail Distributors	IN Market
7D	4.0%	0.4%	2.3%
1Y	35.5%	21.2%	-0.9%

Return vs Industry: SIRCA exceeded the Indian Retail Distributors industry which returned 21.2% over the past year.

Return vs Market: SIRCA exceeded the Indian Market which returned -0.9% over the past year.

Price Volatility

Is SIRCA's price volatile compared to industry and market?
SIRCA volatility
SIRCA Average Weekly Movement	5.1%
Retail Distributors Industry Average Movement	7.7%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: SIRCA is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SIRCA's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2006	394	Sanjay Agarwal	https://www.sircapaints.com

Sirca Paints India Limited engages in the import and distribution of wood, metal, and glass coatings in India. The company provides wood coatings including wood stains, polyurethane polishes, polyester products, acrylic finishes, UV products, wood fillers, wood care products, handmade effects, special effects, and additives; bicomponent water-borne and solvent-borne pigmented topcoats; paints and coatings for metals used in corrosion protection and artistic applications; and nitrocellulose and melamine coatings and thinners. It also exports its products to Nepal, Bangladesh, and Sri Lanka.

Sirca Paints India Fundamentals Summary

How do Sirca Paints India's earnings and revenue compare to its market cap?
SIRCA fundamental statistics
Market Cap	₹12.03b
Earnings (TTM)	₹277.23m
Revenue (TTM)	₹2.04b

43.4x

P/E Ratio

5.9x

P/S Ratio

Is SIRCA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SIRCA income statement (TTM)
Revenue	₹2.04b
Cost of Revenue	₹1.17b
Gross Profit	₹871.11m
Other Expenses	₹593.87m
Earnings	₹277.23m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	10.12
Gross Margin	42.61%
Net Profit Margin	13.56%
Debt/Equity Ratio	0.0%

How did SIRCA perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

20%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SIRCA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SIRCA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SIRCA. This is calculated by dividing SIRCA's market cap by their current preferred multiple.
What is SIRCA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹12.03b

SIRCA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.5x
Enterprise Value/EBITDA	26.6x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does SIRCA's PE Ratio compare to its peers?

SIRCA PE Ratio vs Peers

The above table shows the PE ratio for SIRCA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	554.6x

Forward PE

Price-To-Earnings vs Peers: SIRCA is good value based on its Price-To-Earnings Ratio (43.4x) compared to the peer average (554.6x).

Price to Earnings Ratio vs Industry

How does SIRCA's PE Ratio compare vs other companies in the Indian Retail Distributors Industry?

Price-To-Earnings vs Industry: SIRCA is good value based on its Price-To-Earnings Ratio (43.4x) compared to the Indian Retail Distributors industry average (45.9x)

Price to Earnings Ratio vs Fair Ratio

What is SIRCA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SIRCA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	43.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SIRCA's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of SIRCA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SIRCA (₹439.15) is trading above our estimate of fair value (₹375.61)

Significantly Below Fair Value: SIRCA is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: SIRCA is poor value based on its PEG Ratio (1.1x)

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Future Growth

How is Sirca Paints India forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

38.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIRCA's forecast earnings growth (38.3% per year) is above the savings rate (6.7%).

Earnings vs Market: SIRCA's earnings (38.3% per year) are forecast to grow faster than the Indian market (17.4% per year).

High Growth Earnings: SIRCA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SIRCA's revenue (31.7% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: SIRCA's revenue (31.7% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SIRCA's Return on Equity is forecast to be high in 3 years time (20.9%)

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Past Performance

How has Sirca Paints India performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SIRCA has high quality earnings.

Growing Profit Margin: SIRCA's current net profit margins (13.6%) are higher than last year (10.8%).

Past Earnings Growth Analysis

Earnings Trend: SIRCA's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: SIRCA's earnings growth over the past year (67.2%) exceeds its 5-year average (6.9% per year).

Earnings vs Industry: SIRCA earnings growth over the past year (67.2%) exceeded the Retail Distributors industry 20.3%.

Return on Equity

High ROE: SIRCA's Return on Equity (12.3%) is considered low.

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Financial Health

How is Sirca Paints India's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SIRCA's short term assets (₹2.0B) exceed its short term liabilities (₹371.7M).

Long Term Liabilities: SIRCA's short term assets (₹2.0B) exceed its long term liabilities (₹540.0K).

Debt to Equity History and Analysis

Debt Level: SIRCA is debt free.

Reducing Debt: SIRCA has no debt compared to 5 years ago when its debt to equity ratio was 11.3%.

Debt Coverage: SIRCA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SIRCA has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Sirca Paints India current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.46%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SIRCA's dividend (0.46%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: SIRCA's dividend (0.46%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SIRCA has been paying a dividend for less than 10 years.

Growing Dividend: SIRCA's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.8%), SIRCA's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (42.1%), SIRCA's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average board tenure

CEO

Sanjay Agarwal (61 yo)

no data

Tenure

₹8,755,000

Compensation

Mr. Sanjay Agarwal Co-Founded Sirca Paints India Pvt Ltd. and serves as its Chairman cum Managing Director. Mr. Agarwal served as Chief Managing Director.Mr. Agarwal has been working in the Paints & Coati...

CEO Compensation Analysis

Compensation vs Market: Sanjay's total compensation ($USD111.86K) is below average for companies of similar size in the Indian market ($USD197.28K).

Compensation vs Earnings: Sanjay's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: SIRCA's board of directors are considered experienced (4.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31