Stylam Industries Ltd Sector Industry

Transcription

1 Page 1 of 5 Company Profile Stylam Industries Ltd, an ISO 9001:2008 certified company, is engaged in the designing of a variety of laminates for homes, offices and other places. The company was incorporated in the year 1991 as a private limited concern. It owns a well-furnished installation unit with a storage capacity of more than 3.5 million sheets of laminates. It is headquartered in Chandigarh and has its manufacturing facility in Panchkula, Haryana. Stock Price Last Close Price (28/01/2016) Market Cap (Cr.) (31/12/2015) Price in Rs. 52 Wk High/Low /81.00 vg. Volume (1 Mo) (Rescaled to 100 for ease of comparison) Mr. Jagdish Gupta, the Managing Director and Mr. Satish Gupta, the Whole Time Director are the promoter directors of the company. The promoter group holds 58.8% of the total shareholdings of the company and the rest is held by non-institutional shareholders. Business Overview Stylam manufactures high-pressure laminates for home and industry use under the brand name STYLM. The company offers decorative, compact industrial, fire retardant, fabric-based, post forming, cabinet liner and metal laminates. These products constitute basic interior building materials responsible for residential and commercial space attractiveness, safety and security. It is in the business of laminates, namely, decorative laminates, metallic laminates, compact laminates, and exterior laminates. The decorative laminates are suitable for a wide range of applications in both home furniture and professional environments such as wooden claddings/lining of walls and columns, lift linings, doors and shelves. Metallic laminates provides a modern decorative and innovative appeal to the interiors. During FY 2015, the company recorded revenue from exports, including export incentive entitlement of INR crore, representing 78.3% of total revenue. The company also progressed well in the domestic business with an increase of 36% in revenues over the previous year. Financials Revenue Gross Margin % Operating Income Operating Margin % Diluted EPS Book Value Per Share Operating Cash Flow Capital Expenditure Free Cash Flow Profitability verage Values unless stated Return on ssets % Return on Equity % sset Turnover Net Margin % Financial Leverage Financial Health except Debt/Equity (Ratio) Long Term Debt Total Equity Debt/Equity Working Capital Report as of 29-Jan Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

2 Page 2 of 5 Income Statement Total Revenue Cost of Revenue Gross Profit Operating Expense Operating Income Pre-tax Income Tax Provision Minority Interests Balance Sheet Stock Holders Equity Long Term Debt Total Non-Current Liabilities Payables Total Liabilities Net PPE Goodwill and other Intangible ssets Total Investments Total Non-current ssets Trading and Other Receivables Inventory Cash and Cash Equivalents Total ssets Cash Flows Depreciation and mortization Change in Working Capital Operating Cash Flow Capital Expenditure Investing Cash Flow Net Common Stock Issuance Net Issuance Payments of Debt Cash Dividends Paid Financing Cash Flow Changes in Cash Report as of 29-Jan Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

3 Page 3 of 5 Financial Performance Stylam s total revenue grew by 14.06% to INR crores in FY 2015 as compared to last year. It registered an operating income of INR crores in FY 2015, an improvement of 39.2% as compared to last year. Its operating margin was 6.5%, up 118 basis points. Its net profit for the year was recorded at INR 9.39 crores, an increase of 37.5% year-on-year. Revenue Growth Key Risks The risks that are faced by the company are from fragmented industries, competitive industries, transitioning from highly unorganized to organized sectors, price-sensitive markets and competition from China. Gross Margin Competitors Its key competitors include Century Plyboards Ltd and rchidply Industries Ltd. Century Plyboards Ltd manufactures plywood, laminates, veneers, block boards and doors, among others. Its logistics business involves managing container freight stations. The company has six manufacturing units in India with a cumulative capacity of 2,10,000 cubic meters. Its marketing infrastructure comprises 35 marketing offices and depots, six regional distribution centres and more than 13,000 retail outlets. Its revenue for FY 2015 was INR crores, registering a growth of 2.5%. rchidply Industries Ltd manufactures and markets wood panels and decorative surfacing products. The company's products include plywood, block boards and flush doors, decorative laminates and decorative veneers. It has two segments, namely, wood-based product and paper-based product. The company s registered office is located at Bengaluru and its plants are located at Uttarakhand and Karnataka. Its revenue for FY 2015 was INR crores, registering a growth of 14.8%. Operating Margin Report as of 29-Jan Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

4 Page 4 of 5 Industry Overview The lamination industry's major end-use segments constitute new residential construction, residential replacement, and commercial sector, namely, furniture and interior infrastructure. With tremendous growth in the real estate sector and rise in the disposable income of the country s middle class, there is an anticipated growth in the demand for interior infrastructure products. The projected growth of the company is based on the push-and-pull effects of supply and demand determinants such as the economic trends in India, growth of infrastructure and housing. The domestic laminates industry is highly fragmented with majority of sector comprising unorganized players, though there has been increasing shift in consumer preference from unbranded to branded goods. Competition from both organised as well as unorganised players leads to pricing pressure for the players in the industry. In the export segment, however, demand has been stable on account of shift from the wood-based panel products to engineered panels such as medium-density fibreboard and particle board. India is one of the largest exporters of laminates in the world. Price/Earnings Trailing Returns Quarterly Results except EPS (Rs.) Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Revenue Expenditure Interest PBDT Depreciation PBT Tax Net Profit Equity EPS Return on Invested Capital (ROIC) *Standalone figures Report as of 29-Jan Initiative of the BSE Investors Protection Fund Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.

5 Page 5 of 5 Important Disclaimers This Research Report is current as of the date on the report until it is replaced, updated or withdrawn. This report may be withdrawn or changed at any time as other information becomes available to us. This report will be updated if events affecting the report materially change. This research on securities [as defined in clause (h) of Section 2 of the Securities Contracts (Regulation) ct, 1956], such research being referred to for the purpose of this document as Investment Research, is issued by Morningstar Investment dviser India Private Limited ( MI ). Please note that this Investment Research is intended for educational purposes only; it is not intended to be a legal, tax, securities or investment advice or offer or solicitation or call-to-action for the purchase or sale of or otherwise any dealing in a security. You should seek the advice of a financial professional and your legal, tax, business or other consultant, and read all relevant issue documents pertaining to the security concerned, including without limitation, the detailed risk factors involved in the investment, before making an investment decision, so as to ensure, among other things, that the security is suitable based on your particular needs and circumstances. Please note further that this Investment Research may not be construed as a representation with respect to a security, regarding the legality of investing in the said security, under the applicable investment or similar laws or regulations of any person or entity accessing this Investment Research. Please note that investments in securities are subject to market and other risks and there is no assurance or guarantee that your intended investment objectives will be achieved. Past performance of a security may or may not be sustained in future and is no indication of future performance. s the price / value / interest rate of a security fluctuates, the value of your investments in the said security and in the income, if any, derived therefrom may go up or down. It is to be distinctly understood that MI, its affiliates, and its officers, directors and employees (i) are not responsible for any trading decisions, damages or other losses related to the Investment Research or its use and also that (ii) they do not take any responsibility for the accuracy, timeliness and/or completeness of the Investment Research, or for the financial soundness of any security. MI is registered with the Securities and Exchange Board of India under the SEBI (Investment dvisers) Regulations, 2013, vide Registration number IN , dated March 27, 2014, and in compliance of the aforesaid regulations and the SEBI (Research nalysts) Regulations, 2014, it carries on the business activities of investment advice and research. MI has not been the subject of any disciplinary action by SEBI or any other legal/regulatory body. MI is a wholly owned subsidiary of Morningstar ssociates LLC, which is a part of the Morningstar Investment Management group of Morningstar, Inc., and Morningstar, Inc. is a leading provider of independent investment research that offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. In India, MI has only one associate, viz., Morningstar India Private Limited, and this company predominantly carries on the business activities of providing data input, data transmission and other data related services, financial data analysis, software development etc. The author/creator of this Investment Research ( Research nalyst ) or his associates or his relatives does/do not have (i) any financial interest in the subject company; (ii) any actual/beneficial ownership of one per cent or more securities of the subject company, at the end of the month immediately preceding the date of publication of this Investment Research; and (iii) any other material conflict of interest at the time of publication of this Investment Research. The Research nalyst or his associates or his relatives has/have not received any (i) compensation from the subject company in the past twelve months; (ii) compensation for products or services from the subject company in the past twelve months; and (iii) compensation or other benefits from the subject company or third party in connection with this Investment Research. The terms and conditions on which MI offers Investment Research to clients, varies from client to client, and are spelt out in detail in the client agreement.