About Stylam Industries
Stylam Industries is a small-cap company with a market capitalisation of Rs 1980 crore of which the free float is Rs 812 crore. Its salient features can be summed up as follows:
(i) It is the one of the fastest growing companies in the high-quality decorative laminates and allied products industry.
(ii) It operates Asia’s largest single location laminate manufacturing plant with a diverse product portfolio, catering to a wide range of customer preferences, built with over 30 years of experience in the industry.
(iii) It is a pioneer in India for introducing the PU+ Lacquer Coating process thereby producing high quality, high value-add laminate finishes. Apart from laminates, it has state of the art technologies and manufacturing facilities for Solid Acrylic Surfaces and Panels.
(iv) It is also diversified into a new segment and added a short cycle press capacity for lamination of impregnated paper on Medium Density Fiber (MDF) panels.
(v) About two-third of its revenues are derived from exports to over 65 countries; the balance being derived from presence across the Indian subcontinent.
(vi) Stylam operates one of the largest single location laminate manufacturing plants in Asia, spread across 44 acres having an annual capacity of 14.3 mn sheets.
(vii) It is a Global Pioneer for the ‘Hot Coating Process’ of PU+ Lacquer coating on thin laminates. This one-of-a-kind Hot Coating Process machine is made with a patented technology by KLEIBERIT and BARBERAN.
(viii) It is also a Pioneer in India for Solid Acrylic Surfaces, setting up the first production line to manufacture these products in India.
The Company earns a RoE of 21.36. The TTM EPS is 45.57. At the CMP of Rs 1170, the P/E is 25.65.
Key Fundamentals & Financial Results
Stylam’s Key Fundamentals & Financial Results are as follows:
Key Fundamentals
| Parameter | Values | ||
| Market Cap | (Rs cr) | 1,980 | |
| EPS – TTM | (Rs) | [*S] | 45.57 |
| P/E Ratio | (X) | [*S] | 25.65 |
| Face Value | (Rs) | 5 | |
| Latest Dividend | (%) | 50.00 | |
| Latest Dividend Date | 29 Jul 2021 | ||
| Dividend Yield | (%) | 0.21 | |
| Book Value / Share | (Rs) | [*S] | 213.35 |
| P/B Ratio | (Rs) | [*S] | 5.48 |
[*C] Consolidated [*S] Standalone
Financial Results
| Particulars (Rs cr) | Sep 2022 | Sep 2021 | % Chg |
| Net Sales | 246.34 | 171.95 | 43.26 |
| Other Income | 0.26 | 4.21 | -93.82 |
| Total Income | 246.6 | 176.16 | 39.99 |
| Total Expenses | 206.75 | 147.49 | 40.18 |
| Operating Profit | 39.85 | 28.67 | 39 |
| Net Profit | 24.21 | 15.03 | 61.08 |
| Equity Capital | 8.47 | 8.47 | – |
(Source: Business Standard)
Sunil Singhania’s Abakkus Growth Fund has increased stake. Nikhil Vora’s Sixth Sense India opportunities and Mukul Agarwal are major shareholders
Sunil Singhania‘s Abakkus Growth Fund had bought 313,896 shares on 30th March 2022 at Rs 900 each in a bulk deal. The shareholding as of 30th September 2022 is 3,84,880 shares.
On 7th December 2022, the PMS Fund bought 350,000 shares at Rs 1127.05 in another bulk deal, increasing the holding to 7,34,880 shares. The investment is worth about Rs 85.25 crore at the CMP of Rs 1160.
Vanaja Sundar Iyer, also a noted HNI investor, bought 130,000 shares on the same date in the same bulk deal.
India 2020 Fund Ii, Limited, which held 5,99,800 shares as of 30th September 2022, was the seller in both bulk deals.
Amongst the other notable shareholders is Nikhil Vora‘s Sixth Sense India opportunities which holds 7,18,780 shares comprising 4.24% of the equity.
Mukul Mahavir Agarwal, together with his PACs Suresh Kumar Agarwal and Madhulika Agarwal, collectively hold 6,50,148 shares.
A Mutual Fund named QUANT SMALL CAP FUND, which is founded by Sandeep Tandon, holds 7,43,490 shares.
Vision 2022-2025
According to the Investors Presentation, the company has reached about 80% capacity utilization level in the laminates division. It has now started modular expansion at the existing facilities that will increase capacity by up to 40%. This will entail a total Investment of INR 40 Cr. The Company aims to be a net debt free Company.
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