Hold Stylam Industries target of Rs 2359: East India Securities

East India Securitie's report on Stylam Industries

Stylam Industries (Stylam) Q2FY25 results beat our estimates. Revenue at Rs 2,627 mn ‐ increased by 12.3% yoy & 8.3% qoq Sales volume at 3.2 mn sheets ‐ increased by 1.6% yoy & 8.1% qoq Realisation per sheet at Rs 821 ‐ up by 10.5% yoy & 5.9% qoq EBITDA at Rs 544 mn ‐ increased by 15.1% yoy & 29.9% qoq EBITDA margin at 20.7% ‐ up by 51 bps yoy/ 344 bps qoq PAT at Rs 341 mn ‐ increased by 7.5% yoy/ 20.3% qoq PAT margin at 13.0% ‐ down by 58 bps yoy but up by 129 bps qoq.

Outlook

Stylam is currently trading at P/E of 24.5x on FY26e basis. We have valued the stock based on P/E methodology. We have assigned multiple of 25x (2year forward) on FY26E PAT of Rs. 1,599 mn to arrive at a target price of Rs 2,359 per share, which is potential upside of ~2.25% from current market price and recommend “HOLD” on the stock.

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