Accordingly, if an investor had invested Rs 10,000 in the stock four years ago and stayed put, the investment would have jumped to 14 lakh, according to an analysis by ET Markets.
However, in the recent past, the stock came under extreme pressure, falling 170% in just over two months of 2024. In the last 3 months, the shares have lost 225%.
Stylam Industries is one of the leading companies in the high-quality decorative laminates and allied products industry. It operates Asia’s largest single-location laminate manufacturing plant with a diverse product portfolio, catering to a wide range of customer preferences, built with over 32 years of experience in the industry.
The company is also a pioneer in India for introducing the PU+ Lacquer Coating process, thereby producing high quality, high value-add laminate finishes. Apart from laminates, it has state-of -the-art technologies and manufacturing facilities for solid acrylic surfaces and panels.
According to the shareholding pattern available with the exchanges, the company is majority-owned by promoters at 54.61%, while public shareholders own the remaining 45.39%.Among the public shareholders, mutual funds own about 4% and foreign investors have 3.35%.In the recent December quarter, Stylam clocked sales of Rs 215 crore, which is a decline of 8.3% year-on-year. Sales declined from exports, which stood at Rs 144 crore.
The contribution margin has improved as compared to the previous quarter and now stands at 49% for the third quarter. Further, EBITDA for the same period was at Rs 48 crore.
Technical outlook – What should investors do?
Technically, the stock has made a high of Rs 1,970 in September last year from the lows of April 2023. Post this phase, the stock was under consolidation.
“The shares have further completed a 50% retracement of this rally as per Fibonacci. Now, it has strong support near 1,400 levels. Medium-term investors can accumulate stock for a target of 2,200 but keep stop loss of 1,400,” said Vaibhav Kaushik, research analyst, GCL Broking.
With data inputs from Ritesh Presswala
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
