Feel they need to devise a strategy to establish a brand for the domestic mkt. Don’t think they have found much success yet, only once that happens i think mkt will give it a premium valuation.
Good part is they’re net debt zero now, new capex to come onstream by H2FY25.
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Japanese laminates major Aica Kogyo looks to pick stake in Stylam Industries. This news has lead to increase in share price recently. Any views for the purchase?
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@rupaniamit since you track US real estate market closely (my assumption based on your work on Pokarna)
How do you see below product will impact Pokarna / Acrysil ?
Note : This is a slide from Equirus - Stylam latest report.
- From the report I can see they make laminates for external cladding as well
About 7 years ago there was major incident in London
Government passed a law to replace all cladding (non fire resistant ) for all the apartments, there is some funding also allotted by the government. At this moment one cannot sell a property if the flat has cladding . If you have any insights about this subject please share your thoughts.
Many Thanks
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Thank you for sharing this new product of Stylam.
Countertop material decision is driven by use-case and price difference between the alternatives.
Quartz really made its inroads and started replacing granite on a bigger scale when the designs of Quartz started matching and improving that of natural granite while the pricing difference also came to a level where user was ready to pay up for that upgrade. Long time ago price difference between granite and quartz was so huge that Quartz was considered a luxury countertop.
This acrylic solid surface product might find its applications in hotels (extended stays), rental properties, apartment complexes, hospitals, businesses, etc. I don’t think it can make inroads in residential houses which are mid grade and above.
One needs to dig through the price difference between laminate solid surface, acrylic solid surface, quartz, and granite to better understand the value migration and size of opportunity.
Once we understand the price difference (including final application project cost), only then we can have a view on what level of impact it can have on Pokarna, Acrysil type of businesses.
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EBITDA margins contracting from peak of 20% and stagnant revenues. A worrying sign for profits and stock performance
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Thanks Anant for sharing. How do you see Promotor (Jagadish Gupta) and Director (Manav Gupta) offloading total of 5.5% stake last quarter. This is especially at a time where the outcomes of major expansion are at horizon?
Also, Manav Gupta’s (Director) holdings is disclosed under ‘Public’ and not ‘Promoters’. Any reason why?
And no exchange disclosures were made as well to the exchange regd the stake sale.
Recent export data to USA looks promising.
Source - STYLAM INDUSTRIES LIMITED | U.S. Import Activity
Note - This is only USA data. Europe/ROW data is not available here.
Q4 Guidance in the investor presentation also points to the same.
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