Stylam Industries - Cementing Its Position In Wood Panels: Anand Rathi Initiates Coverage

Anand Rathi Report

Incorporated in 1991, Stylam Industries Ltd. has emerged as one of the leading entities in wood panels (laminates). The encouraging demand context would raise utilisation levels and drive its healthy revenue growth.

Operating in 80 plus countries, Stylam Industries derives significant revenue from exports (67%). To enhance its domestic revenue, it is scaling up and strengthening its distribution channel.

To meet mounting domestic and overseas demand, the company is expanding capacity 40% in a phased manner. Hence, we expect offtake to clock a 21% compound annual growth rate over FY22-25 with the utilisation/sales ratio improving from 64.3% to 81.3%.

The company expects to be net-debt free by FY25.

Risks: Slowdown in economic activity, heightened competition, volatility in raw-material pricing and adverse currency fluctuations.

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