Comments
Target: ₹2,963
CMP: ₹2,537.45
Stylam Industries reported a decent set of numbers during the quarter, with revenue, EBITDA, and PAT growing 12.3 per cent, 15.1 per cent, and 7.5 per cent y-o-y to ₹262.7 crore, ₹54.4 crore, and ₹34.1 crore, respectively. The H1-FY25 revenue, EBITDA, and PAT were up 9.9 per cent, 8.1 per cent, and 4.9 per cent y-o-y to ₹505.3 crore, ₹96.2 crore, and ₹62.5 crore, respectively. The performance is better than the industry growth rate and that of other domestic peers. The all-round growth in 2QFY25 was well supported by volume and price realisation.
The company’s ongoing brownfield capacity expansion, where management envisaged a capex of ₹200-220 crore, is slightly delayed but on track and is expected to be operational by FY25. At full capacity, the new plant is likely to generate an additional ₹800 crore in revenue.
We expect the company’s revenue to grow at a CAGR of over 20 per cent. New capacity additions, backed by a favourable product mix (with a higher share of value-added products), coupled with aggressive marketing, are expected to drive strong 20 per cent CAGR growth in revenue. The export vertical continues to dominate the revenue composition, as the company has added several large clients in growing markets. Domestic revenue, which is currently ₹303 crore as of FY24, is projected to reach ₹700 crore by FY30.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.