Anand Rathi's research report on Stylam Industries
More volumes pushed up Stylam’s Q4 FY25 revenue 10.6% y/y to ~Rs2.7bn, though blended realisation were soft. High input costs and product-mix changes pulled gross profit down 7.1% y/y to Rs1.1bn. EBITDA fell 10% y/y to Rs429m. Higher tax at 21.6% of PBT, 8.3% a year ago, led to a significant 21.3% decline y/y in PAT to Rs296m. Commissioning of the facility by Oct’25 is expected to boost volume growth, and input-cost tailwinds would expand margins.
Outlook
Management aims to enhance the domestic business and expects exports to cross Rs12bn in the next 2-3 years. We build in 20%/ 26% revenue/PAT CAGRs over FY25-27 and retain our Buy rating with a TP of Rs2,276.
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