At a Glance
Sirca Paints has carved a niche in luxury wood coatings, backed by exclusive licenses of Italian brands like Sirca and OIKOS. With an 18% OPM, no debt, and 20%+ sales growth, this smallcap is making bigger peers sweat. But is it premium potential or just decorative dazzle?
1. 🎯 Introduction with Hook
Forget walls. Sirca paints furniture — luxuriously. While biggies like Asian and Berger splash colour on cement, Sirca’s playing premium with Italian wood coatings, niche emulsions, and designer thinners (yes, that’s a thing).
Now trading at 46x earnings, Sirca is either the next Indigo Paints… or a glossed-up microcap with midcap dreams.
2. 🧪 WTF Do They Even Do?
Sirca’s palette isn’t your regular blue-and-pink:
- 🎨 Wood Coatings: Mass to luxury, via Sirca and Unico
- 🖼️ Decorative Textures: Through OIKOS, Italian designer finishes
- 🧪 Thinners & Reducers: Under brand Welcome
- 🤝 Tie-ups: Exclusive rights for Sirca (Italy) in India, Nepal, Bangladesh, Sri Lanka
Also recently acquired Wembley Group — expanding into Indian decorative paints turf.
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 141 | 196 | 264 | 311 | 374 |
| Net Profit (₹ Cr) | 17 | 28 | 46 | 51 | 49 |
| EPS (₹) | 3.03 | 5.06 | 8.41 | 9.39 | 8.96 |
| OPM (%) | 9% | 20% | 23% | 22% | 18% |
| ROCE (%) | 11% | 18% | 25% | 24% | 20% |
| ROE (%) | 17% | 15% | 17% | 15% | 15% |
📌 FY25 profit dipped slightly — Wembley acquisition integration & cost pressures visible.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
- P/E: 46.6
- P/B: 6.5
- EV/EBITDA: ~30x
- Dividend Yield: 0.36% (barely a coffee)
- Market Cap: ₹2,288 Cr
🎯 EduInvesting FV Estimate:
Assuming FY26 EPS of ₹10.5:
- 30x = ₹315
- 40x = ₹420
- 50x = ₹525
➡️ Fair Value Range = ₹315 – ₹525
Current price ₹418 is… splashing right in the middle.
5. 🔥 What’s Cooking – News, Triggers, Drama
- 🎯 Wembley Acquisition (₹81.5 Cr): Adds decorative paint capacity
- 🌱 MoU with OIKOS (2024): Eco-friendly designer paints
- 🤝 Exclusive manufacturing license from Sirca S.p.A (May 2023)
- 🎁 Bonus issue approved in May 2023
- 🏭 Massive capex: Fixed Assets jumped 3X in FY25 to ₹164 Cr
Sirca’s clearly shifting from boutique brand to manufacturing beast.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| FY25 Snapshot | Amount (₹ Cr) |
|---|---|
| Total Assets | ₹451 |
| Fixed Assets | ₹164 |
| Borrowings | ₹0 (Debt free!) |
| Cash + Investments | ₹2 + ~₹30 est. |
| Equity Capital | ₹55 |
| Reserves | ₹295 |
Dreams? Buy Wembley, expand to Bangladesh, and become the Ferrari of Paints. Respect ✨
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF (Est.) | Commentary |
|---|---|---|---|
| FY23 | -₹19 | Negative | High working capital drag |
| FY24 | ₹32 | ~₹15 | Recovery starts |
| FY25 | ₹54 | ~₹30 | Healthy cash flows resume |
Also, no debt = all internal funding = sasta startup mindset with posh Italian products.
8. 📊 Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROCE | 20% | Sexy-ish |
| ROE | 14.9% | Cool |
| OPM | 18% | Respectable |
| Debtor Days | 91 | Manageable |
| Inventory Days | 198 | Sticky 🎨 |
| CCC | 218 days | Stretchy AF |
The cash conversion cycle is high due to inventory buildup post-acquisition.
9. 📈 P&L Breakdown – Show Me the Money
- Sales grew 20% in FY25
- Net Profit fell ~4% due to margin pressure
- Gross Margins stable, but EBITDA margin dipped from 22% → 18%
The Wembley bet will likely pay off from FY26 onwards — eyes on synergies.
10. 🧯 Peer Comparison – Who Else in the Paint Game?
| Company | P/E | OPM % | ROCE % | PAT FY24 (₹ Cr) | Sales (₹ Cr) |
|---|---|---|---|---|---|
| Asian Paints | 61 | 17.7 | 25.7 | 3,925 | 33,905 |
| Berger Paints | 58 | 16.1 | 25.1 | 1,183 | 11,545 |
| Indigo Paints | 40 | 18.1 | 19.5 | 144 | 1,277 |
| Sirca Paints | 46.6 | 18.0 | 20.0 | 49 | 374 |
Sirca has Indigo-level margins, Berger-level ROCE, and smallcap-level risks.
11. 🧩 Miscellaneous – Shareholding, Promoters, KMP
- Promoter Holding: 67.55%
- FII Stake: Dropped from 5.9% → 4.3% in FY25
- DII Stake: 0% — mutual funds not yet in love
- Public Holding: 28.2%
- KMP Highlights:
- Chairman: Mr. Sanjay Agarwal
- CFO: Mr. Ravi Gupta
- Recently doubled employee count post-Wembley
👀 Bonus: No pledges, no convertible junk, no shady related-party chaos.
12. 🧑⚖️ EduInvesting Verdict™
Sirca is a rare microcap with class. Italian brand deals, decorative ambitions, clean balance sheet, and growing sales = strong paint DNA.
But…
- High working capital cycle
- Low institutional presence
- And you’re still paying 46x earnings 👀
🎨 Verdict:
“Sirca’s painting a long-term story on a luxury canvas. Just don’t expect a sudden multibagger graffiti — this is art, not a 5-minute reel.”
🎯 Fair Value Range = ₹315 – ₹525 (FY26E EPS ₹10.5, 30x–50x multiple)
Current Price: ₹418
✍️ Written by Prashant | 📅 10 July 2025
Tags: Sirca Paints, Wood Coatings, OIKOS India, Smallcap Paint Stocks, Wembley Acquisition, Luxury Paint Brands, EduInvesting, Decorative Paints, Debt-Free Stocks, Italian Finishes
