Retina Paints Ltd: 210 Cr in Sales, 588 Days in Collections, and 1 Big Question – Who’s Paying?
1. At a Glance
Retina Paints Ltd is the desi challenger brand that wants to fight Asian Paints with a paint bucket in one hand and franchisee agreements in the other. From IPO in 2023 to ₹210 Cr sales in FY25, growth has been flashy. But behind the glossy coat, cracks are visible: 588-day cash conversion cycle, debtor days longer than Netflix subscription renewals, and profitability heavily dependent on “other income.” At CMP ₹78.9, the P/E is 164 – almost like pricing a Maruti 800 at BMW rates.
2. Introduction
Every Indian wall has a story. Some have the glory of Asian Paints’ “Har ghar kuch kehta hai,” others the discount buckets of local hardware dukans. Retina Paints wants to be in the former club, but right now, it’s somewhere in between – more like “Har ghar EMI pending hai.”
Founded in 2010, Retina Paints started with emulsions and primers and later moved into retail outlets (own + franchisee). Unlike industry giants that ride on brand pull and dealer networks, Retina has tried to retailify paint – opening franchisee showrooms like they’re running Café Coffee Day for paint buckets.
The ambition is clear: scale to 100 outlets, expand product lines (emulsions, distempers, wall putty), and win market share in Tier-2/3 India. But the problem? In paints, brand trust takes decades, not IPO proceeds. Asian Paints took 80 years to build dominance. Retina wants it in 8.
So, the million-rupee question: is Retina Paints building a future Berger Paints, or is it a Shalimar Paints 2.0 (aka – perpetually loss-making)?
3. Business Model (WTF Do They Even Do?)
Retina’s business model is a three-layer coating:
Manufacturing: 2 plants in Telangana (Textures – 8,000 tons, Paints – 1,000 tons, Wall Putty – 1,000 tons). Small compared to Asian’s 17 lakh ton capacity.
Retail Expansion: Own outlets (2 as of 2024) + franchisee network (85 outlets in Aug’25, targeting 100). Big bet is distribution-led scaling.
Revenue Split (FY24):
Sale of Products – 67%
Franchisee Fees – 32% (unusual in paints; franchisee fees should not be this high)
Bank Interest – 1%
Essentially, Retina isn’t just selling paints – it’s also selling the dream of becoming a paint dealer. This MLM-vibe revenue mix is both innovative and risky.
4. Financials Overview
Source table
Metric
Latest Qtr (Mar’24)
YoY Qtr (Mar’23)
Prev Qtr (Sep’23)
YoY %
QoQ %
Revenue (₹ Cr)
11.7
NA
NA
NA
NA
EBITDA (₹ Cr)
-3.65
NA
NA
NA
NA
PAT (₹ Cr)
0.74
NA
NA
NA
NA
EPS (₹)
0.53
NA
NA
NA
NA
Annualised PAT = ₹13 Cr (FY25 audited). EPS ~₹8.5 → At CMP ₹79, forward P/E ~9.3. But last year’s P/E (164) looked insane because FY24 PAT was <₹1 Cr. Clearly, FY25 was a turnaround year.
5. Valuation (Fair Value Range Only)
P/E Method: Industry avg. P/E ~47. With EPS ~₹8.5, FV ~₹160–180.
EV/EBITDA: EV ₹129 Cr, EBITDA (FY25 ~₹21 Cr est.) → EV/EBITDA ~6. FV range ~₹150–170.
DCF: Assuming 10% growth, WACC 12%, FV ~₹140–160.
📌 Fair Value Range = ₹140 – ₹175 Disclaimer: Educational purposes only, not investment advice.
