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Indigo PaintsBOM:543258 +0.24%90 Return-on-Tangible-Equity is 21.01% as of Mar. 2026, which is 13% above its 10-year median of 18.58. GuruFocus rates BOM:543258 with a GF Score™ of 90/100 and a GF Value™ of ₹1,566.25 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,570 Chemicals companies, Indigo Paints ranks better than 79.75% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Indigo Paints's annualized net income for the quarter that ended in Mar. 2026 was ₹2,307 Mil. Indigo Paints's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹10,980 Mil. Therefore, Indigo Paints's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 21.01%.
The historical rank and industry rank for Indigo Paints's Return-on-Tangible-Equity or its related term are showing as below:
BOM:543258'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.02 Med: 18.58 Max: 33.84
Current: 14.21
During the past 9 years, Indigo Paints's highest Return-on-Tangible-Equity was 33.84%. The lowest was 14.02%. And the median was 18.58%.
BOM:543258's Return-on-Tangible-Equity is ranked better than 79.75% of 1570
companies
in the Chemicals industry
Industry Median: 5.88
vs BOM:543258: 14.21
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Indigo Paints Return-on-Tangible-Equity Related Terms
Indigo Paints Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Indigo Paints's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:543258 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Indigo Paints's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Indigo Paints Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Indigo Paints's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Indigo Paints's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 21.01% mean?
Indigo Paints (BOM:543258) has a Return-on-Tangible-Equity of 21.01% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Indigo Paints and its competitors. This is 13% above median its historical median of 18.58. Over the past decade, Indigo Paints' Return-on-Tangible-Equity has ranged from 14.02 to 33.84. According to the industry distribution chart, Indigo Paints ranks #318 out of 1570 companies in the Chemicals industry, placing it in the top 20.3%.
Is Indigo Paints' Return-on-Tangible-Equity too high?
Indigo Paints' current Return-on-Tangible-Equity of 21.01% is 13% above median its 10-year median of 18.58. Over the past 10 years, this metric has ranged from a low of 14.02 to a high of 33.84. The Chemicals industry median Return-on-Tangible-Equity is 5.88. Indigo Paints' value of 21.01% is 257.3% above this industry median. Based on the distribution chart, Indigo Paints ranks #318 out of 1570 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Indigo Paints has a GF Score™ of 90/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Indigo Paints' Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Indigo Paints ranks #318 out of 1570 companies for Return-on-Tangible-Equity. This places Indigo Paints in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.88. Indigo Paints' value of 21.01% is 257.3% above this benchmark. Historically, Indigo Paints' own Return-on-Tangible-Equity has ranged from 14.02 to 33.84 over the past decade. While the company's 10-year median is 18.58 vs. the industry median of 5.88, Indigo Paints has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.88, based on 1,570 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Indigo Paints's current Return-on-Tangible-Equity of 21.01% is 257.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Indigo Paints and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indigo Paints's current Return-on-Tangible-Equity is 21.01%, which is 13% above median its own 10-year median of 18.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indigo Paints stock overvalued right now?
Based on GuruFocus' analysis, Indigo Paints (BOM:543258) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,566.25, compared to a current price of ₹1,089.35 — trading 30.4% below its estimated fair value. The current Return-on-Tangible-Equity is 21.01%, which is 13% above median its 10-year median of 18.58 and 257.3% above the Chemicals industry median of 5.88. Indigo Paints' overall GF Score™ is 90/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Indigo Paints (BOM:543258), the current Return-on-Tangible-Equity is 21.01% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Indigo Paints (BOM:543258) Overvalued in 2026?
Based on GuruFocus' analysis, Indigo Paints stock appears to be undervalued.
The current stock price of ₹1,089.35 is trading 30.4% below its estimated GF Value™ of ₹1,566.25.
GuruFocus considers Indigo Paints to be Significantly Undervalued.
Key valuation signals for BOM:543258:
Return-on-Tangible-Equity: 21.01% (13% above median its 10-year median of 18.58)
GF Value™: ₹1,566.25 vs. price of ₹1,089.35 (30.4% below fair value)
Industry Position: 257.3% above the Chemicals median (#318 of 1570)
No single metric tells the full story. See the BOM:543258 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indigo Paints Ltd is engaged in manufacturing different types of decorative paints like enamels, emulsions, wood coatings, primers, distempers, putties, and cement paints. Its only operating segment is Paints. Geographically, it derives a majority of revenue from India and also has its presence in other countries.
90GF Score
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