Shares of Stylam Industries soared by 8 percent to reach Rs 1,801 per share on March 26, following the government’s decision to impose an anti-dumping duty on imports of Acrylic Solid Surfaces from China. Since Stylam Industries manufactures approximately 70-80 percent of the Acrylic Solid Surfaces produced in India, this policy shift is expected to be a significant advantage for the company.
The anti-dumping duty will remain in effect for a period of five years. Stylam Industries had previously filed a petition advocating for the imposition of this duty to counter unfairly priced imports from China.
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Acrylic Solid Surfaces are highly versatile and can be easily cut, routed, and sanded like wood. They are widely used for applications such as countertops, shower walls, exterior cladding for buildings, signage, and furniture. Stylam Industries specializes in manufacturing a variety of surface solutions, including High-Pressure Laminates, Compact Laminates, Specialty Laminates, and exclusive solid surfaces.
Analysts at Anand Rathi recently upgraded Stylam Industries’ stock to a "buy" rating, setting a 12-month target price of Rs 2,582 per share—implying a potential upside of over 40 percent. "We anticipate revenue and earnings to grow at a CAGR of 19 percent and 20 percent, respectively, over FY24-27. Following the substantial decline in the stock price over the past three months, we see a favorable risk-reward scenario," the analysts stated.
For the third quarter, Stylam Industries reported an 18.6 percent year-on-year increase in revenue, reaching Rs 2,500 crore, driven by higher sales volumes and improved blended realizations. Although gross margins contracted, strong revenue growth boosted gross profit by 9.3 percent year-on-year to Rs 1,200 crore. However, EBITDA declined by 3.8 percent year-on-year to Rs 46 crore due to higher operating expenses.
Despite this recent surge, Stylam Industries’ stock has experienced a 12 percent decline over the past six months, underperforming the benchmark Nifty 50, which has fallen by 9 percent during the same period.
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