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 192.10 (28/01/2016) Market Cap (Cr.) 153.05 (31/12/2015) Price in Rs. 52 Wk High/Low 227.50/81.00 vg. Volume 23058.71 (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 167.82 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 83.15 104.17 140.21 187.45 213.81 Gross Margin % 22.04 28.23 20.35 25.11 25.52 Operating Income 5.32 4.19 6.17 9.99 13.91 Operating Margin % 6.40 4.02 4.40 5.33 6.51 Diluted EPS 5.13 3.85 5.56 9.33 12.84 Book Value Per Share - - - 38.56 53.17 Operating Cash Flow -2.97 5.26 3.25 23.49 5.72 Capital Expenditure -15.69-10.48-18.48-25.21-12.51 Free Cash Flow -18.66-5.22-15.23-1.72-6.79 Profitability verage Values unless stated Return on ssets % 7.00 4.00 4.00 6.00 7.00 Return on Equity % 19.00 13.00 16.00 22.00 24.00 sset Turnover 1.50 1.38 1.43 1.53 1.52 Net Margin % 5.00 3.00 3.00 4.00 4.00 Financial Leverage 3.26 3.50 4.08 3.79 3.39 Financial Health except Debt/Equity (Ratio) Long Term Debt 32.91 12.15 23.37 29.43 37.83 Total Equity 20.77 23.74 27.83 34.65 44.05 Debt/Equity - - - - - Working Capital 28.58 0.01-0.09-5.48 4.11 Report as of 29-Jan-2016. Initiative of the BSE Investors Protection Fund. 2016 Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.
Page 2 of 5 Income Statement Total Revenue 83.15 104.17 140.21 187.45 213.81 Cost of Revenue 64.82 74.77 111.68 140.38 159.25 Gross Profit 18.33 29.41 28.53 47.07 54.56 Operating Expense 13.91 25.61 23.55 39.06 40.99 Operating Income 5.32 4.19 6.17 9.99 13.91 Pre-tax Income 5.32 4.19 6.17 9.99 13.91 Tax Provision 1.57 1.37 2.10 3.17 4.52 Minority Interests - - - - - Balance Sheet Stock Holders Equity 20.77 23.74 27.83 34.65 44.05 Long Term Debt 32.91 12.15 23.37 29.43 37.83 Total Non-Current Liabilities 34.01 13.47 24.58 30.93 39.44 Payables 11.44 9.44 7.94 14.30 13.09 Total Liabilities 46.90 59.32 85.64 96.62 105.39 Net PPE 26.20 33.81 49.12 71.06 79.37 Goodwill and other Intangible ssets - - - - - Total Investments - - - - - Total Non-current ssets 26.20 37.21 52.49 71.06 79.37 Trading and Other Receivables 17.36 19.63 28.31 31.58 42.32 Inventory 16.13 24.95 31.10 24.64 25.45 Cash and Cash Equivalents 1.09 0.97 1.23 3.56 1.93 Total ssets 67.67 83.06 113.46 131.27 149.44 Cash Flows Depreciation and mortization 1.60 2.82 3.07 3.26 4.20 Change in Working Capital -9.60-3.12-9.32 3.90-14.12 Operating Cash Flow -2.97 5.26 3.25 23.49 5.72 Capital Expenditure -15.69-10.48-18.48-25.21-12.51 Investing Cash Flow -12.42-10.86-18.22-21.83-12.33 Net Common Stock Issuance - - - - - Net Issuance Payments of Debt 1.80 8.06 19.90 9.89 9.91 Cash Dividends Paid -0.64 - - - - Financing Cash Flow 15.70 5.53 15.24 0.68 4.98 Changes in Cash 0.31-0.07 0.26 2.33-1.63 Report as of 29-Jan-2016. Initiative of the BSE Investors Protection Fund. 2016 Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.
Page 3 of 5 Financial Performance Stylam s total revenue grew by 14.06% to INR 213.81 crores in FY 2015 as compared to last year. It registered an operating income of INR 13.91 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 1588.44 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 260.12 crores, registering a growth of 14.8%. Operating Margin Report as of 29-Jan-2016. Initiative of the BSE Investors Protection Fund. 2016 Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.
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 51.38 53.95 58.52 60.60 60.25 Expenditure -44.80-50.56-53.60-54.04-52.82 Interest -2.40-0.12-0.40-1.36-2.23 PBDT 4.18 3.27 4.52 5.20 5.20 Depreciation -0.98-0.99-1.28-1.14-1.17 PBT 3.20 2.29 3.24 4.06 4.03 Tax -1.12-1.30-1.05-1.32-1.93 Net Profit 2.33 2.72 2.19 2.74 2.64 Equity 7.32 7.32 7.32 7.32 7.32 EPS 0.32 0.37 0.30 0.37 0.36 Return on Invested Capital (ROIC) *Standalone figures Report as of 29-Jan-2016. Initiative of the BSE Investors Protection Fund. 2016 Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.
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