Sunil Singhania bought a 1.9 per cent stake in this decorative laminate company; know why?

Sunil Singhania has 28 stocks in his portfolio worth Rs 2,161.9 crore as of the June quarter end.

Sunil Singhania is one of India's renowned investors. He co-founded Abakkus Asset Manager, an asset management firm focused on the Indian market. He previously served as Reliance Capital Group Ltd.'s global equity head. Under his leadership, the Reliance Growth Fund's AUM (now known as the Nippon India Growth Fund) grew 100 times in less than 22 years.  

Sunil Singhania has 28 stocks in his portfolio worth Rs 2,161.9 crore as of the June quarter's end. Recently, he bought a fresh position in 4 stocks- J Kumar Infraprojects Ltd, Stylam Industries Ltd, CMS Info Systems Ltd. and Ethos Ltd.  

He has bought stakes worth 2.7 per cent, 1.9 per cent, 1.1 per cent, and 1.3 per cent in J Kumar Infraprojects Ltd, Stylam Industries Ltd, CMS Info Systems Ltd. and Ethos Ltd, respectively.  

As of August 22, Singhania holds 317,322 shares of Stylam Industries Ltd worth Rs 36.5 crore. Stylam Industries Ltd produces a huge selection of premium decorative laminates, solid surfaces, speciality surfaces, PU+ lacquer coating, and compact laminates. 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 June quarter which stood at Rs 235 crore with 79.1 per cent YoY and 30.78 per cent QoQ growth. The Q1FY23 net profit stood at Rs 20.95 crore, 50.85 per cent YoY and 16.58 per cent sequential growth.  

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 June 2022 quarter, FIIs had increased their holding to 5.34 per cent, while DIIs had increased their holding to 11.11 per cent. 

On August 22, the stock closed at Rs 1160. The stock has a 52-week high and low of Rs 1320 and Rs 760.15, respectively.