Hello Sir,
Hope you are doing well.
Recently, I was going through the details on Stylam Industries.
It’s amazing to see the consistency with which the co. has grown sales and profits year on year.
It’s always good to look at companies which have this uncanny ability of growing year after year and being highly profitable in highly competitive sectors.
Below, we have shared notes from the Investor presentation and Q3 FY 24 con-call of the company. Hope you find the details useful for your own investments or to add the stock to your watch list.
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Stylam Industries – Notes from Investor presentation and Q3 FY 24 concall
– Company
- Stylam Industries is one of the fastest growing companies in the high-quality decorative laminates
- Operates one of the largest single location laminate manufacturing plants in Asia, spread across 58 acres having an annual capacity of 16 million sheets
- They are also a Pioneer in India for Solid Acrylic Surfaces, setting up the first production line to manufacture these products in India
- Stylam is setting up a new plant for the manufacturing of laminate sheet adjoining to its existing plant in Manak Tabra, Panchkula Haryana
– Vision 2025-2027
- Company has reached about 73% capacity utilization level in the laminates division. They had completed modular expansion at the existing facilities that has increased their capacity. This had entailed a total investment of INR 30 Cr
- Company has become a net debt free company and will ensure to maintain the debt free level even after setting up the new plant
- Setting up of their new Plant for the manufacturing of laminate sheet as announced previously is progressing well; plant is expected to be operational in the third quarter
– Q3 FY 24 performance
- Stylam clocked sales of INR 215 crore in Q3 FY 24 quarter, with a decline of 8.30% YoY
- Sales declined from exports, which is INR 144 crore (6.5% YoY decline) and domestic sales which is 71 crores (11.25% YoY decline)
- Net debt stood at INR 0 as on 31ST December 2023. Net worth stands at INR 502 crores
– Exports
- In export there was a damage of almost INR 18 to 20 Crore in Q3 FY 24 due to the Palestine and Israel war
- US is a very big market for them
– Domestic
- They are weak in domestic market and are trying to improve it.
– New Laminates Plant
- They will get immediate sale from that and initial target is around 200-225 crore
- total capacity will be minimum 800 Crores, but they do not know it will take 2 year or 3 year to utilize the whole capacity
– Solid Acrylic surface business
- Company is expecting 200-300 crore business from this unit; however, the current utilization is < 10%
- Company reported 5.37 crore sales in Q3 and around 20 crore in 9M FY 24
- Govt. has started investigation regarding anti-dumping duty on China and Korea
(End)
Disclaimer: This is not a recommendation to buy/sell Stylam Industries. The securities quoted are for illustration only and are not recommendatory.
Best Regards,
Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.
SEBI Research Analyst Registration No. INH100001690
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Name: Ekansh Mittal Email Id: [email protected] Ph: +91 727 5050062
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