Check out this small-cap laminate stock which is in the phase of expanding its current capacity
On November 21, 2020, the stock was trading at Rs 407, while on 21 November 2022, the stock closed at Rs 1062
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 currently has a market capitalisation of Rs 1800 crore.
The company 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 per cent of the revenue comes from exports.
The company has strong financials. It has delivered 10-year sales and net profit CAGR of 20 per cent and 36 per cent, respectively. The company reported high ever quarterly revenue in the latest September quarter which stood at Rs 246 crore with 43 per cent YoY and 4.6 per cent QoQ growth. The Q2FY23 net profit stood at Rs 24 crore, 60 per cent YoY and 14.5 per cent sequential growth.
The company has reached about 80 per cent capacity utilisation level in the laminates division. They have now started modular expansion at the existing facilities that will increase their capacity by up to 40 per cent.
According to recent quarterly filings, institutional investors are accumulating the stock. DIIs owned 3.03 per cent of the company at the end of the September 2019 quarter, while FIIs owned 3.87 per cent. However, as of the end of the September 2022 quarter, FIIs had increased their holding to 5.34 per cent, while DIIs had increased their holding to 11.33 per cent.
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.