Target: ₹ 625

CMP: ₹ 506.95

We believe, Sirca Paints Ltd (Sirca), with Its Exclusive Collection with Europe’s Wood Coating Stalwart Spa Spa, is cell-positioned to capitalise on the long Runway for Groway for Groway for Groway for Groway for Groway for Groway Coatings Market in India. As of fy25, this market is peged at ₹ 10,000 Crore and would grow at a cagr of over 10 per cent the next 5-10 years in our view.

We believe there is a structural shift in wood coating Safer. Transition to Pu is also backed by increase adoption of mdf in the furniture industry as melamine struggles with adhesion on Engineered Materials. Additional, Once Architect Driven, Pu Coatings, Are Increasing Mainstream Retail Products.

We expect puated segment to grow at a faster rate of 25 per cent du to these dynamics. Sirca by virtue of its strong presence in high quality Pu based wood coats, would be a key beneficiary of this shift away from melamine. Sirca’s Recent Strategic Acquisitions (Welcome, WEMBLEY) Expand Its Product Portfolio Breadth and Customer Base.

We use a DCF-Based Approach to Value Sirca. Our Base Case Scenario TP is ₹ 625 and UPSIDE SCENARIO (20-25 per cent Probability Event) Fair Value is ₹ 800. Whereas, our downside Scenario (15-20 per cent Proobility Event) Fair Value is ₹ 360 (Bull-Bear Case).

Published on September 24, 2025