Anyone have a thesis on why the stock is falling so much?
A major factor is underutilization of the recently‑acquired Thailand ABS/SAN plant (acquired Jan 2025). Management reports Thailand volumes were only ~16–17 kt in Q1 (April–June), i.e. roughly 50–55% of capacity. This low utilization hurts profit: the Thailand plant has high fixed costs and operated at a loss under previous owners. Management cautions “the ramp‑up will take time,” projecting 1–2 years for Thailand volumes to normalize. In Q1, consolidated PBT fell 14% even as volume grew, reflecting the drag from Thailand integration. Analysts note that reconfirming customer contracts and building sales in new markets is an ongoing process. In short, the Thailand unit is not yet profit‑accretive and has weighed on margins. (For context, pre‑acquisition results were standalone India only; now consolidated Q1 PAT was ₹51.9 cr vs ₹56.2 cr in Q4 FY25
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Can someone please tell me if this capacity of ABS 85,000 tpa, SAN 100,000 tpa and HRG rubber 31,000 tpa is just for the Thailand plant or for the whole of Styrenix including both the India and Thailand plants that they bought for USD 22 million?
A few questions for anyone who is tracking this business from a few quarters now :
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what is the moat here ? or is there no moat and just import substitution has caused ROCE above 20% for a decade now ?
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how does it compare with bhansali on execution, competitive moat and management ?
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can the company benefit from the 8.25% custom duty waive off from GoI on solvents?
Key raw materials like SAN etc are mainly imported
For Thailand Plant
40b2074d-3c3b-45a8-940a-487da93b19d4.pdf (368.4 KB)
Thailand plant size also meaningful
- ABS: 85,000 TPA SAN: 100,000 TPA HRG Rubber: 31,000 TPA
Almost the Current Indian operation
it’s helpful to analyze Thailand business after positive note of MD : Page 4 of the presentation file
In Thailand, we have ended the first full financial year on a positive note, ensuring continuity for our existing customers as well as the promise of growth and development from our Map ta Phut site. Additionally with our participation in Chinaplas and Plastindia, we have further demonstrated our commitment to our customers and in the products that we deliver across the region. Engagement with prominent new entrants in the subcontinent as well as established and emerging players in the Asian region particularly in the EV and Appliance segments aligns well with our efforts to deliver value globally. Our sales office and representation now includes Japan, South Korea, Vietnam in addition to our offices in Shanghai and Bangkok.