Check Before You Invest : Stylam Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Stylam Industries Ltd belong to?

Stylam Industries Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Laminates/Decoratives segment.

Q.2 Is Stylam Industries Ltd a good quality company?

Stylam Industries Ltd is a good quality company, based on a consistently good 7-year financial track record.

Q.3 Is Stylam Industries Ltd undervalued or overvalued?

Stylam Industries Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Stylam Industries Ltd a good buy now?

Stylam Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Stylam Industries Ltd?

Stylam Industries Ltd revenue growth is 12.1% for FY-2025, which is below its 5-year CAGR of 17.27%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Stylam Industries Ltd?

Stylam Industries Ltd Return on capital employed is 27.5% for FY-2025, which is in line with its 5-year historical median of 27.5%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Stylam Industries Ltd?

Stylam Industries Ltd Return on Asset is 17.61%, which is in line with its 5-year historical median of 17.61%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Stylam Industries Ltd?

Stylam Industries Ltd Return on equity is 20.42% for FY-2025, which is below its 5-year historical median of 23.83%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Stylam Industries Ltd?

Stylam Industries Ltd Cash conversion cycle is 106 days, above its 5-year historical median of 84 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.48	1.48
ROE	20.42	23.83
ROCE	27.5	27.5
Cash Conversion Cycle	106 days	84 days

Q.6 Gross Profit margin of Stylam Industries Ltd?

Stylam Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.4% for FY-2025, which is in line with its 5-year median of 18.4%, indicating stable margins.

Q.7 Operating Profit Margin of Stylam Industries Ltd?

Stylam Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.09% for FY-2025, which is in line with its 5-year median of 18.09% indicating stable margins.

Q.8 Net Profit Margin of Stylam Industries Ltd?

Stylam Industries Ltd Net Profit Margin is 11.89% for FY-2025, is in line with with its 5-year median of 11.52%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	18.4	18.4
Operating Profit Margin	18.09	18.09
Net Profit Margin	11.89	11.52

Q.9 Debt to Equity ratio of Stylam Industries Ltd?

Stylam Industries Ltd Debt-to-Equity ratio is 0.05, which is lower with the industry average of 0.76, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Stylam Industries Ltd?

Stylam Industries Ltd Debt to cash flow from operations is 0.34, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Stylam Industries Ltd?

Promoters hold 54.11% of the Stylam Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Stylam Industries Ltd vs industry peers?

Stylam Industries Ltd revenue CAGR is 17.27%, compared to the industry median CAGR of 8.11%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	12.1	8.1
Gross Profit Growth	1.1	6
Operating Profit Growth	0.5	8.3
Net Profit Growth	-4.7	3.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.48	1.05
ROE	20.42	8.85
ROCE	27.5	10.91
Cash Conversion Cycle (days)	105.59	117

Valuation & price assessment

Q.1 Stock return of Stylam Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 35.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	35.7%	22.7%	23.2%	39.2%

Q.3 Valuation ratios of Stylam Industries Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	26.83	26.39	24.31
Price to Book	4.93	5.32	2.16
Price to Sales	3.41	3.07	1.05
EV to EBITDA	17.73	16.48	14.85

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