Multibagger Update: This stock jumped from Rs 407 to Rs 1088 in two years
On 30 October 2020, the stock was trading at Rs 407, while on 31 October 2022, the stock is quoting at Rs 1088.
In the last two years, shares of Stylam Industries Ltd touched a high of Rs 1269. The company belongs to the S&P 500 SmallCap index and has a market capitalisation of Rs 1853 crore.
Stylam Industries Ltd produces a huge selection of premium decorative laminates, solid surfaces, speciality surfaces, PU+ lacquer coating, and compact laminates. Stylam operates one of the largest single-location laminate manufacturing plants in Asia, spread across 44 acres and having an annual capacity of 14.3 mn sheets.
Under the brand name "STYLAM," it produces decorative laminates, with the majority of its exports going to South East Asian and European nations. As per FY22, about 63.88% of the revenue comes from exports.
The company has strong financials. It has delivered 10-year sales and net profit CAGR of 20% and 36%, respectively. The company reported high ever quarterly revenue in the latest September quarter which stood at Rs 246 crore with 43% YoY and 4.6% QoQ growth. The Q2FY23 net profit stood at Rs 24 crore, 60% YoY and 14.5% sequential growth.
The company has reached about 80% capacity utilization level in the laminates division. We have now started modular expansion at the existing facilities that will increase our capacity by up to 40%. This will entail a total investment of Rs 40 crore.
According to recent quarterly filings, institutional investors are accumulating the stock. DIIs owned 3.03% of the company at the end of the September 2019 quarter, while FIIs owned 3.87%. However, as of the end of the September 2022 quarter, FIIs had increased their holding to 5.34%, while DIIs had increased their holding to 11.33%.
The stock is trading at a PE multiple of 23.29x. The scrip has a 52-week high and low of Rs 1269 and Rs 760.15, respectively.
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