Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

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Equity Bottom-up Research

Equity Bottom-Up

<ul>
<li>While the profitability of <a href="https://www.smartkarma.com/entities/stylam-industries-ltd" target="_blank" data-smartkarma-citation="entities:13492:1" rel="noopener">Stylam Industries (SYIL IN)</a> is growing healthily (&gt;30% YoY) in H1 FY24 due to margin expansion, revenues are trending at -4.5% YoY.</li>
<li>The company became net cash in H1 FY24 (73 crore INR)  and zero gross debt. A strong balance sheet would aid in the company's expansion plans. </li>
<li>Trading at 23x/18x FY24e/25e, we see strong growth ahead for the company as it cements its position as one of India's top laminate export players. </li>
</ul>


While the profitability of Stylam Industries (SYIL IN) is growing healthily (&gt;30% YoY) in H1 FY24 due to margin expansion, revenues are trending at -4.5% YoY.
The company became net cash in H1 FY24 (73 crore INR)  and zero gross debt. A strong balance sheet would aid in the company's expansion plans. 
Trading at 23x/18x FY24e/25e, we see strong growth ahead for the company as it cements its position as one of India's top laminate export players. 


Stylam Industries (SYIL IN): Sluggish Exports, FY25 To See Improvements With Expansion

External broker reports(aggregated public sources), HDFC Securities

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External broker reports(aggregated public sources)

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<ul><li>In Q2FY24, Stylam’s revenue fell 5% YoY owing to global turmoil, lower NSR, and a cool-off in ocean freight rates.</li><li>However, EBITDA rose 18% YoY on continued cool-off in raw material prices and lower other expenses.</li><li>EBITDAM recovers for the sixth consecutive quarter to 19.9% (up 385/145 bps YoY/QoQ)— its best in the past nine quarters.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In Q2FY24, Stylam’s revenue fell 5% YoY owing to global turmoil, lower NSR, and a cool-off in ocean freight rates.However, EBITDA rose 18% YoY on continued cool-off in raw material prices and lower other expenses.EBITDAM recovers for the sixth consecutive quarter to 19.9% (up 385/145 bps YoY/QoQ)— its best in the past nine quarters.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Stylam Industries - Strong Margin Offsets Weak Volume Offtake

<ul><li>We initiate coverage on Stylam Industries with a BUY rating and a target price of INR 2,300 (22x its Sep-25 EPS)</li><li>We like the company for its industry-leading growth and EBITDA margins, healthy balance sheet, and return ratio profile</li><li>We believe it still has room to expand its geographical reach and penetration in existing domestic and export markets, offering strong revenue growth visibility</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We initiate coverage on Stylam Industries with a BUY rating and a target price of INR 2,300 (22x its Sep-25 EPS)We like the company for its industry-leading growth and EBITDA margins, healthy balance sheet, and return ratio profileWe believe it still has room to expand its geographical reach and penetration in existing domestic and export markets, offering strong revenue growth visibilityContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Stylam Industries: Fastest-Growing Laminate Company in India. BUY

Stylam Industries-  Fastest-Growing Laminate Company in India.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/stylam-industries-ltd" target="_blank" data-smartkarma-citation="entities:13492:1" rel="noopener">Stylam Industries (SYIL IN)</a> reported a good quarter on the profitability front, with PAT up 32.4% YoY but revenues down 4% YoY. </li>
<li>Exports showed degrowth temporarily by 11% YoY due to a slowdown in Europe and other key markets, but the company guided an improvement in subsequent quarters. </li>
<li>Trading at 20x/16x FY24e/25e, the stock is not a steal, but with a remarkable growth profile of 20-25% CAGR, we see tremendous potential as a multibagger for the company.</li>
</ul>



Stylam Industries (SYIL IN) reported a good quarter on the profitability front, with PAT up 32.4% YoY but revenues down 4% YoY. 
Exports showed degrowth temporarily by 11% YoY due to a slowdown in Europe and other key markets, but the company guided an improvement in subsequent quarters. 
Trading at 20x/16x FY24e/25e, the stock is not a steal, but with a remarkable growth profile of 20-25% CAGR, we see tremendous potential as a multibagger for the company.


Stylam Industries Q1 FY24: Slow Revenue Quarter, But Healthy Margin Expansion and 32% Profit Growth

India

Stylam Industries Ltd. manufactures high-pressure laminates.  The Company produces laminates in many colors and that simulate wood grain and metals.

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Stylam Industries (SYIL IN)