With a market capitalization of ₹ 1,670 crores, Sirca Paints India is a small-cap company that manufactures, sells and exports wood coatings and other decorative paints under the brands Sirca, Unico and others. Its paints and textures include interior, exterior, wall primer, finishes/effects and wall putty.
According to an exchange filing, the company has announced the issue of bonus shares in the ratio of 1:1, i.e., one bonus equity share for every equity share of ₹ 10 held by the members (shareholders) of the company. It has fixed May 11, 2023, as the record date for this issue.
At 02:24 PM on Friday, its shares were trading at ₹ 611.85 apiece. In the past five years, the company’s share price has rallied by 500% from ₹ 101.97 apiece. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 6 lakhs.
The company recently entered into an exclusive manufacturing licence agreement with Sirca S.p.A (Italy) to manufacture 10 different Polyurethane wood coating products in India, which were earlier imported from Sirca S.p.A (Italy) by the Company. These products roughly make up 50-55% of its total sales.
Sirca S.p.A (Italy) will be providing the technical know-how to the company to manufacture these products as per Italian standards and will also be supplying it with the key raw material for manufacturing these products in India for the first 3 months. Thereafter, it will be produced/procured in India. This will help the company to cut down on its import bill and inventory days of finished goods. Moreover, it will increase its manufacturing in India, and strengthen its operations.
The company’s promoters hold a 67.55% stake in it followed by Retail investors with 23.02%, foreign institutions with 5.55%, and mutual funds with a 3.38% stake.
Written by Simran Bafna
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