On March 26, shares of Stylam Industries rose by 8% to reach ₹1,801 per share after the government imposed an anti-dumping duty on Acrylic Solid Surface imports from China. Since Stylam Industries produces around 70-80% of India’s Acrylic Solid Surfaces, this move is expected to significantly benefit the company.
The newly imposed duty will remain in place for five years. Stylam Industries had previously petitioned for this measure to counteract unfairly priced imports from China.
Acrylic Solid Surfaces are versatile materials that can be easily shaped and are widely used in applications like countertops, shower walls, building facades, signage, and furniture. Stylam Industries specializes in surface solutions, including High-Pressure Laminates, Compact Laminates, Specialty Laminates, and premium solid surfaces.
Following this development, analysts at Anand Rathi upgraded Stylam Industries’ stock to a “buy” rating, with a 12-month target price of ₹2,582 per share—suggesting a potential upside of over 40%. They anticipate revenue and earnings to grow at a CAGR of 19% and 20%, respectively, over FY24-27. Given the stock’s sharp decline over the past three months, analysts see an attractive risk-reward opportunity.
For the third quarter, Stylam Industries posted an 18.6% year-on-year revenue increase to ₹2,500 crore, driven by higher sales volumes and improved pricing. Despite a contraction in gross margins, gross profit rose 9.3% year-on-year to ₹1,200 crore. However, EBITDA dropped 3.8% year-on-year to ₹46 crore due to rising operating costs.
Despite this recent rally, Stylam Industries’ stock has fallen 12% in the last six months, underperforming the Nifty 50, which has declined by 9% over the same period.
