Stylam- Decent Fundamentals with Cheap Valuation

You are perfactly right.

But i m just balancing my investment thesis and then take decision

1…Mukul agrawal is still invested upto sept 2021

2…M.F. holding increased by 4% in sept quarter

3…D/E ratio is continuously decreasing since last 8 yrs and since 2 yrs, significant decrease and they want nil debt by 2025

4…No single fraud surfaced till now in history of company on google search

5…Scruttlebutt

I have asked few dealers and all replied same
“It is export oriented big company”

I have further asked one more dealer and reply is awaiting

FINANCIALS

1…Cfo>pat(Last 10 yrs)
Cfo=250cr
Pat=200

2…fcf%.sales/.capex
2021=15%/ 7cr
2020=9%/24cr
2019= (-) /45cr
2018= 2.3% /10cr
2017= (-) /77cr
2016= (-) /37cr

3…ROE@
5yrs avg@15.6
10yrs avg@16.2%

4…OPERSTING MARGIN

2021@20%
2019@17%
2017@16%
2015@11%
2010@7%

5…op profit(avg) growth rate
Last 5 yrs@29%
Last 10 yrs@34%

6…Sales growth rate
Last 5 yrs@16%
Ladt 10yrs@21%

7…D/E RATIO
2017@2.2
2021@0.5

8…receivables% of sales
2021=20%
2020=19%
2019=17%
2018=17%
2017=16%
2016=15%

9…debtor days
2021@76
2021@69
2019=63
2018=58
2017=55

FUTURE GROWTH

1…Corian/solid acrylic surface

=Our entry into acrylic
solid surfaces presents a huge opportunity, going forward.

=The Company acquired Golden Chem-Tech Limited

2…Hot coating process

=Last year, the Company entered a new business vertical
of value-added laminates and came up with anti-finger
and high-gloss finishing on laminates through hot coating
process.

=Our Company is the only manufacturer to provide
such value-added finish on thin laminates. Customers
are satisfied with the finish and the product seems to be
gaining momentum now

3…Short cycle press

=Our Company has entered into new a segment and added
short cycle press for lamination of impregnated paper on
Medium Density Fibre (MDF) panels

=However,
during the testing of the plant certain teething issues
cropped up which were dealt efficiently, hence making it
commercially viable

4…Capacity expansion

=The Company expanded its production capacity from 11.0
Mn sheets to 14.3 Mn sheets per annum in the second
half of Q4 of FY20. However, due to nationwide lockdown,
the commercial production of the expanded capacity
commenced from May of FY21

5…Sell of property

=By the year end, the Company disposed of its investment
property, the proceeds of which were used in repayment
of debts.

=The funds realised were used in the debt repayment
hence the resultant savings in the interest cost is
expected to improve the bottom line of the company.

6…Company with a view to explore
more potential markets, incorporated a Wholly owned
subsidiary (WOS) named Stylam Asia-Pacific Pte. Limited in
Singapore on the September 16th, 2019. Howbeit, subsidiary
being in its inceptive phase has not yet commenced its
business operations.

7…During the year under review, the company has purchased
34% shares of Alca Vstyle Sdn Bhd.(Alca) Incorporated
in Malaysia. These shares were purchased from existing
shareholders. Alca is engaged in the business of trading of
commercial and industrial furniture & fixtures.

8…We are gaining market share in India and overseas markets

9…Consolidation in industry with smaller players are difficult to stay in market

10…(2021)Foraying into attractive plywood segment
We are expanding horizontally into the INR 25,000
crore plywood market, which we believe is a natural
progression of our laminate business. The organised
section of the markets has started seeing benefits of the
GST and recent e-way bill implementation, demanding
improved prices especially in the premium segment.
A greenfield project with an investment of INR 60 crore
is being setup at Manak Tabra, Haryana. The business
is being setup as a separate entity under our wholly￾owned subsidiary Stylam Panels Limited. It will be run as
an independent unit, while simultaneously leveraging
on our expertise in the plywood segment and our robust
distribution network. We envision to create a mark for
ourselves in the premium plywood market launching
innovative value-added products, in addition to catering
to the industrial commercial segment and mass
consumption market.

Disc…invested

This is my latest portiilo with buy and hold approach

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