Stylam Industries (SYIL), one of India’s top four laminate manufacturers, has seen a remarkable rise in its stock price, surging by 110% since March 2023. The company holds approximately 8% of the market share in India and stands as the second-largest laminate exporter in the country, with exports constituting about two-thirds of its total revenues.
Continued Momentum Predicted
Equirus Securities, a domestic brokerage firm, predicts that Stylam Industries will continue to experience growth in its stock price. The firm points out recent capacity expansions and favorable industry conditions as key drivers for this ongoing rally.
Global Expansion and Market Share Growth
Over the years, Stylam has solidified its position globally, contributing significantly to India’s laminate exports, which grew at a 14% annual rate to ₹32 billion by FY24. Despite increased competition, Stylam has managed to increase its market share from 16% to 19% during this period, driven by a robust 17% annual growth in export revenues.
Key Export Markets and Diversification Strategy
Stylam Industries has expanded its international footprint from 60 countries in FY18 to over 80 countries by FY24. Major markets in Europe, the Middle East, the Far East, and North America collectively contribute 90% to its export revenues. This geographical diversification has not only boosted revenue but also protected the company against fluctuations in freight costs.
Strategic Initiatives and Future Prospects
In FY23, Stylam embarked on an ambitious strategy to explore new markets and participated in international exhibitions across Dubai, Germany, Atlanta, and Bogota. The company’s new laminate plant in Haryana is expected to double its revenues, targeting high-growth export markets and expanding its customer base.
Outlook and Investment Recommendation
Equirus Securities has initiated coverage on Stylam Industries with a ‘buy’ rating and set a target price of ₹2,489 per share, indicating a potential upside of 21% from its previous closing price of ₹2,061. With a strong presence in global markets, strategic expansions in production capacity, and proactive market strategies, Stylam is well-positioned to capitalize on future growth opportunities in the laminates industry.
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