Durlax Top Surface : Premium Decor Trend?

Stock Opportunities Untested - but worth a good look
1

Starting this thread as I could not find any thread on it. Moderators please feel to change if required. Thanks.

Here it goes:

Sailing in Premiumization Decor Trend

Durlax Top Surface Ltd, established in 2010, specializes in manufacturing solid surface materials under brands: LUXOR® (ACRYLIC UV SOLID SURFACE), ASPIRON® (MODIFIED SOLID SURFACE) and Heronitez.

  • This Acrylic Solid Surface usually composed of acrylic or polyester resins, few marble dust, bauxite and pigments & additives, Aluminium Trihydrate (ATH), Mono Methly Amine, PVC Methyl amine, etc generally procured domestically and imports from South Korea for specific materials

  • Durlax is amongst the worlds very few companies which produces it own Solid Surface in its own State of the Art Continous Casting. (Technology - German Vacucast 1st in India & Casting Stainless Steel Belt lines from Korea)

  • This technology specializes in providing Seamless, Bubble free, 3D printing and thermoformable molded in any shape product resulting in Aesthetically appealing.

  • Differences among brands:
    Luxor - Acryllic bendable Solid Fast selling suitable for indoor & outdoor residential and commercial setting; made from Mono Methly Amine & PVC Methyl amine, aluminium trihydrate powder & adhesive chemistry
    Apiron - non-bendable suitably for large projects like hotels, healthcare, retail; made from polyester resin and aluminium trihydrate powder chemistry
    Heronitez - a more premium (natural marble & Terrazzo finish)

  • B2B business done through associates, architects and interior designers

  • Led by Shravan Suthar (Chairman) & Lalit Suthar (WTD)

  • In 2016, co went for it’s own manufacturing facility before that used to import

  • Compared to Granite prices Solid surfaces are cheaper

  • Gaining traction from Export Market, like American & Middle East

  • IPO (40.80cr) is for Working capital requirement and has 60-90 days cycle

Usage:

  • Solid Surfaces can be fabricated and installed in almost any application with invisible seams, is flexible and design friendly, anti-bacterial composition, fire retardant, insects free
  • Artificial customized solid material or a man-made solid material or Stone with durable function and made to fulfill designer application or in Modern Furniture, Bedroom, Kitchen, Offices, Lobby, Reception, Hotels, Pubs, Hospitals, Airports. Also in exterior facades, ceilings and signage

Location & Capacity:

  • Manufacturing located at Vapi, Gujarat with international quality control parameters
  • Office located at Goregaon, Mumbai
  • Annual capacity to produce FY 2023-24 - 2,40,000 Sheets and operating at 72% in 2 shifts
    FY 2021-22 - 1,20,000 sheets & 78% utilization
    FY 2022-23 - 1,20,000 sheets & 89% utilization

Revenue:

  • Top 10 Consumers contributes 70% of Sales
  • Domestic contribution - Maharashtra 72%, Odisha 9% & UP 4%, Delhi 2.80% & Karnataka 2.63%
  • Also exports - [numbers pending]

p1 (2)
p1 (2)800×558 26.1 KB

p1
p1800×558 69.1 KB

p4
p4800×558 39.2 KB

p8
p8800×558 65.7 KB

4 Likes
2

Risks? It is carrying substantial debt

3

Could you please elaborate on growth prospects, expansion strategies, or the feasibility of transitioning to a third shift? Additionally, how might Indian consumers seamlessly adopt acrylic solid sheets in their purchasing habits? Any insights on this, sir

4

It is certainly a unique product. But it is surprising that this industry is lead by a SME co. Why? What is the potentiality? What is the competition and what prevents big players to enter into this space? Is there any entry barrier? Don’t think so.

6

Please read forum guidelines properly before initiating a thread.
https://forum.valuepickr.com/faq

To nurture a vibrant community ValuePickr does not restrict anyone from starting a thread on a stock of his/her choice. Only Caveat is if you are going to introduce a discussion on a stock, we expect you to do your homework and start the thread with some basic info-set, and 1st level analysis such as growth drivers, a few positives & negatives, immediate triggers if any, and enumerate some RISKS. Nothing very heavy is required, but enough to set the tone for 2nd level of discussions.

Thread initiators are usually alerted to edit their post, and make necessary changes before thread is opened up again. So you/colleague and look to edit the post in order to meet prescribed guidelines. We have the responsibility - especially the thread initiator (assumption is he/she is a savvy investor) - to cater to bringing everyone on same page - quickly - if you know what we mean.