Buy Stylam Industries, target price Rs 2,525: HDFC Securities

HDFC Securities has a buy call on Stylam Industries with a target price of Rs 2,525. The current market price of Stylam Industries is Rs 1587.65. Stylam Industries, incorporated in 1991, is a Small Cap company with a market cap of Rs 2648.30 crore, operating in Building Materials sector.

Stylam Industries' key products/revenue segments include Laminates for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 256.30 crore, down -3.14 % from last quarter Total Income of Rs 264.62 crore and up 18.36% from last year same quarter Total Income of Rs 216.54 crore. The company has reported net profit after tax of Rs 29.82 crore in latest quarter.

The company's top management includes Mr.Jagdish Rai Gupta, Mr.Manav Gupta, Mr.Manit Gupta, Mr.Sachin Bhatla, Mr.Satpal Garg, Mr.Vinod Kumar, Ms.Renu Sood, Ms.Purva Kansal. Company has Mittal Goel & Associates as its auditors. As on 31-12-2024, the company has a total of 2 Crore shares outstanding.

Investment Rationale
HDFC Securities anticipate a 6% YoY volume growth for Stylam Industries in laminates. Considering the current global economic uncertainty, the export performance of laminate companies may be negatively affected. As a result, HDFC Securities has revised its target multiple for Stylam Industries to 20x EPS, down from 25x. They are maintaining our existing ratings on all the stocks under their coverage.

Promoter/FII Holdings
Promoters held 52.19 per cent stake in the company as of 31-Dec-2024, while FIIs owned 3.94 per cent, DIIs 11.59 per cent.