Stylam Industries Q3 Results Review - Current Weakness Transient; Healthy Traction In Exports: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Report.Stylam Industries Ltd.’s reported strong 22.3% Ebitda margin in Q3 despite a soft and inline laminate-volume/revenue (down 8% YoY, Rs 200 million sales loss due to Israel war). Exports is now showing strong visibility with healthy enquiries for sourcing from global original equipment manufacturers. Despite well spread distribution, warehousing and branding efforts, domestic laminate business is taking time to scale up fast due to stiff competition. Prices of key raw materials are stable now; management is hopeful to maintain its Ebitda margin at 20% plus after reporting 22.3%/20.3% in Q3 /nine months FY24. It has increased its laminate’s greenfield capex to Rs 2 billion (from Rs 1.5 billion earlier) by adding one more production line to 4 now. Likely operational in Q3 FY25, the new facility will have Rs 6 billion plus revenue potential (at 3 times average turnover). Scale up will be fast as ~50% capacity is already booked from export customers. In acrylic solid surface, despite slow start (nine months FY24: Rs 200 million), Stylam Industries is confident of achieving Rs 3 billion plus revenue from the segment over the next three years. Focus of sales under own Granex brand over OEM sales has led to longer time in scale up..We broadly maintain estimates and expect laminate-volume/ revenue/ profit after tax compound annual growth rate of 16%/17%/29% over FY23-26E (FY18-23: 12%/ 23%/26%/ 37%), with strong operating cash flow , and return on capital employed (35% in FY26E). We remain sanguine on the company's prospects and maintain; 'Buy' with an unchanged target price of Rs 2,199 (18 times FY26E price/earning)..Click on the attachment to read the full report:.Orient Electric Q3 Review - Investments To Drive Strong Industry Leading Growth In Medium Term: Yes Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Stylam Industries Q3 Results Review - Current Weakness Transient; Healthy Traction In Exports: Systematix

Israel war impacted Rs 200 million sales in Q3; healthy enquiries from leading global customers provide robust outlook.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Stylam Industries Q3 Results Review - Current Weakness Transient; Healthy Traction In Exports: Systematix

Israel war impacted Rs 200 million sales in Q3; healthy enquiries from leading global customers provide robust outlook.

Choose a plan

Follow Us

DOWNLOAD THE APP