Financial Highlights
₹ in crores
Particulars
|
31st March, 2023
|
31st March, 2022
|
31st March, 2021
|
Revenue
|
2205
|
1792
|
1338
|
EBITDA
|
270
|
251
|
252
|
Profit After Tax
|
118
|
131
|
132
|
EPS
|
105
|
118
|
117
|
The company's revenue recorded strong growth, reflecting a 23.06% increase to ₹2,205 crores in FY 2022-23 from ₹1,792 crores in FY 2021-22. Additionally, the EBIDTA also saw an increase by 7.35% to ₹270 crores in FY 2022-23 from ₹251 crores in FY 2021-22. Furthermore, exports showed notable growth, with a 20.07% increase to ₹640 crores in FY 2022-23 from ₹534 crores in FY 2021-22.
Revenue Breakup

Segment wise Revenue Breakup
₹ in crores (for the year ended 31st March,2023)
Type of goods or service | Laminates
|
Panel product & furniture
|
Potato flakes
|
Others
|
Total
|
India
|
1085
|
320
|
25
|
90
|
1519
|
Outside India
|
513
|
73
|
55
|
0.42
|
641
|
Total revenue from contracts with customers
|
1597
|
392
|
80
|
90
|
2160
|

Business Insights


Source: HDFC Report
Dividend
The Directors recommended a dividend of 90% (₹9/- per equity share) on July 27th, 2023.
Laminates Industry Overview
The overall laminates industry’s size is pegged at INR54bn. The industry has clocked
a 3% CAGR over FY16-21 led by a 12% CAGR in exports while domestic industry’s
growth largely remained flat.
The domestic industry, pegged at INR38bn in FY21, logged a 3% CAGR from FY16-20.
However, in FY21, the industry was largely flat YoY impacted by covid-19 related
lockdowns. On the other hand, exports growth was 7% in FY21 despite container
availability issues, higher freight rates and covid-19 related travel restrictions.

Large prominent player leading in domestic as well as exports market
The global laminates industry, pegged at USD8bn, is likely to clock a 3.5% CAGR from
2016 to 2021. India’s share in exports is increasing to the US, Europe and Asia Pacific
markets. All major players have significant share in the exports market, with
Greenlam being the largest exporter with a share of ~38%.

Laminates industry to outperform plywood
According to our estimates, while the plywood industry is expected to clock an 11%
CAGR over FY21–26E, the laminates industry is likely to be turn in a 13.6% CAGR over
FY21–26E. The faster growth in laminates industry is likely to be led by exports,
where India is gaining led by low-cost competitiveness.
Raw material challenges driving further growth towards organised
In the wood panel space (compared with plywood and particle board), laminates is
highly organised with ~70% of domestic market share. Furthermore, market share
of top five players in this industry is as high as ~60%.
Moreover, unlike the tiles industry, exports market is catered to by all large
organised players—meaning the organised sector would continue to do better
(given exports is growing faster than domestic industry). Challenges on the raw
material front too with respect to availability and higher prices are accelerating the
shift towards organised players.

Peer Comparison
Stylam industries clocked a 14% revenue CAGR over FY16–21 versus 3% for the
industry. In fact, it outgrew the leaders Greenlam and Merino, which clocked a 4%
CAGR each. Not only revenues, the company also registered the fastest EBITDA/PAT
CAGR of 26%/36% over FY16–21.

Operating leverage can drive margins further
Stylam’s FY21 utilisation stood at <60%. With increase in its utilisation rate and focus
on sale of value-added products, the company has ample room to expand margins.

Stylam clocked EBITDA margin of 20% in
FY21, lower than Merino’s 27% but higher
than Greenlam’s 17% and Century’s 18%.
Comparison as on 09.05.2024
₹ in crores
Particulars
|
Merino Industries
|
Greenlam Industries
|
Century Plyboards
|
Stylam Industries
|
Total Revenue
|
2205
|
2044
|
3670
|
953
|
EBITDA
|
270
|
233
|
583
|
155
|
PAT
|
118
|
128
|
384
|
96
|
Market Cap
|
3711
|
6895
|
14352
|
2709
|
Share Price (as on 09.05.2024)
|
3320
|
543
|
646
|
1558
|
P/E
|
31.55
|
55.29
|
39.12
|
39.09
|
P/S
|
1.68
|
3.37
|
3.91
|
2.84
|
Strengths
Established Presence and Diversified Revenue Profile.
Extensive Distribution Network and Export Presence.
Comfortable Capital Structure and Healthy Cash Accruals.
Stable Demand Outlook with Competitive Intensity.
Weaknesses
Stabilization Risk Associated with Large-Scale Particle Board Project.
Exposure to intense competition and changes in demand in the real estate sector.
Working Capital Intensive Operations.
Raw Material Price Fluctuation and Forex Exposure.