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Buy or Sell: Stylam Industries Share Price Target 2024, 2025, 2030 Long-Term Prediction

HP Jinjholiya

24 August 2024

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Today, we are going to estimate the Stylam Industries Share Price Target 2024 to 2050 Long Term Prediction. Stylam Industries is listed on the NSE under the symbol “STYLAMIND” and on the BSE with the code “526951“. let’s analyze the future of Stylam Industries shares as well, including whether it’s a good time to buy or sell them today.

Additionally, we will also take into analysis Stylam Industries Share Recommendations from various brokerage firms, including Target’s High Price, Target’s Low Price and Recommendation at the end of the article.

Profile of Stylam Industries

Keep an eye on Stylam Industries’s share price today with real-time updates, and examine its performance on the stock market through comprehensive charts that display the fluctuations in Stylam Industries’s stock price.

Stylam Industries Share Price Today

An effective method for evaluating the Stylam Industries share price Target is by examining research reports and analyses conducted by reputable financial institutions and brokerage firms. The latest research reports are available on Stylam Industries.

Stylam Industries Share Price Target

The financial services firm HDFC Securities published the latest research report on Stylam Industries Share Price Target, assigning a ‘buy’ rating with a share price target of Rs. 2,550 from its current market price of Rs. 1,584 as of 05 Feb 2024.

In Q3FY24, Stylam’s revenue took a hit primarily due to weak demand in the domestic market and decreased export sales, influenced by the Israel-Palestine conflict, which had approximately a 9% revenue impact. However, the company managed to improve its EBITDA margin by 200 basis points QoQ, reaching an all-time high of 22.3%. This improvement was attributed to sustained gross margin expansion, which has been consistently recovering QoQ for the seventh consecutive quarter. Consequently, Stylam witnessed a significant rise in EBITDA and APAT by 21% and 30% respectively, YoY.

Looking ahead, Stylam anticipates substantial growth in the US market, which currently contributes about 5% of its revenue. The company is optimistic about the US market’s potential to contribute to a 10-15% growth in consolidated revenue. Despite challenges such as the Red Sea crisis impacting ocean freight rates and potential anti-dumping duties on acrylic imports, Stylam remains focused on maintaining stable gross and EBITDA margins.

The company has completed its laminate debottlenecking expansion in Q3FY24 and is progressing with a brownfield expansion project estimated at INR 2-2.25 billion, expected to double its laminate segment revenue potential upon completion by Q3FY25.

Despite adjustments to volume estimates for FY24-26 due to ongoing market challenges and expansion delays, Stylam’s higher margins mitigate the impact on EBITDA and APAT. As a result, analysts have slightly reduced the APAT estimate by 1/4% for FY24/25E while maintaining the FY26 estimate. However, the BUY rating remains unchanged with a target price of INR 2,550 per share, reflecting confidence in Stylam’s growth prospects, industry-leading margins, healthy balance sheet, and return ratio profile.

Stylam Industries, a prominent player in the laminate industry, has maintained its BUY rating with an unchanged target price of INR 2,550 per share, which is 22 times its estimated consolidated EPS for March 2026. Despite facing challenges in Q3FY24, including an 8% decline in revenue both quarter-on-quarter (QoQ) and year-on-year (YoY) due to subdued demand, the company has shown resilience.

To analyze the Stylam Industries Share Price Target prediction, I will employ technical analysis and machine learning models, specifically focusing on chart patterns, market trends, and historical performance data.

About Stylam Industries Company

Stylam Industries, a renowned name in the Indian decorative laminates and allied products industry has established itself as a pioneer in innovative and quality surface solutions. With a rich three-decade legacy, they have a significant global presence, exporting to over 80 countries while maintaining a strong footprint across India.

Their diverse product range includes high-pressure laminates, acrylic solid surfaces, and advanced materials like PU+ lacquer-coated finishes. Stylam emphasizes environmental stewardship and sustainability, ensuring their products meet high standards of quality and eco-friendliness. Their forward-thinking approach and commitment to excellence have made them a trusted name in both domestic and international markets.

Strengths–

Steady Revenue Growth: Stylam has demonstrated consistent revenue growth over the years, with total revenue reaching ₹9,110,266,000 in the trailing twelve months (TTM) period. This indicates the company’s ability to generate substantial income from its operations.

Healthy Operating Profit: Despite facing challenges, Stylam maintains a healthy operating profit, with an operating income of ₹1,571,466,000 in the TTM period. This suggests efficient management and cost-control measures.

Strong Equity Position: Stylam boasts a robust equity position, with total equity grossing ₹4,119,927,000 as of March 30, 2023. This signifies a solid financial base and stability.

Positive Cash Flow: The company has recorded positive operating cash flow, indicating its ability to generate cash from its core business activities. In the TTM period, operating cash flow stood at ₹662,070,000.

Weaknesses–

Declining Net Income: Despite steady revenue growth, Stylam’s net income has shown fluctuations, with a decrease from ₹959,802,000 in 2023 to ₹608,861,000 in 2021. This indicates challenges in maintaining profitability.

High Debt Levels: Stylam carries a significant amount of debt, with total debt amounting to ₹469,298,000 as of March 30, 2023. High debt levels can pose risks, especially in times of economic downturns or interest rate hikes.

Negative Free Cash Flow: The company has experienced negative free cash flow in certain periods, such as the TTM period, where free cash flow was recorded at -₹84,542,000. This suggests challenges in managing capital expenditures and financing activities.

Opportunities–

Market Expansion: Stylam has the opportunity to expand its market presence both domestically and internationally, leveraging its strong brand reputation and product quality.

Product Diversification: The company can explore diversification into related product lines or segments within the construction and interior design industry, tapping into new revenue streams.

Threats–

Market Competition: Stylam faces competition from both domestic and international players in the laminate industry. Intense competition could impact market share and pricing power.

Economic Uncertainty: Economic fluctuations, inflation, and geopolitical tensions pose threats to Stylam’s operations and financial performance, impacting consumer spending and demand for its products.

Peer Comparison of Stylam Industries

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I would like to remind you that I am not authorized by SEBI to provide any financial advice or recommendations. As you know, Share price prediction is not an exact science, That’s why I am conducting in-depth research and using different AI tools to predict share prices.

Disclaimer– These Share Price Targets for “Stylam Industries Share Price Target” are only provided for informational purposes. It does not constitute a recommendation to buy, sell, or hold Stylam Industries stock. Investors should conduct their research and analysis and consult with financial experts before making any investment decisions— Sharedhan.com