Stylam Industries Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹3,371.10+₹69.20 (+2.10%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Stylam Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Stylam Industries Limited engages in the manufacture and sale of laminates and allied products under the STYLAM brand name in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees1,242

Annual revenue₹1,129 Cr

How does it make money?

Turns over ₹1,129 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 1,242 employees supports ₹90.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin19.6%

Net margin13.3%

Revenue / employee₹90.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

VOLTAS LTDP/E 75.8x · ROE 7.0%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 24.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.6% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE24.6%

ROE18.6%

Peer median ROE17.1%

What is the outlook?

6 analysts covering the stock expect revenue to grow about 21.6% and earnings to grow about 25.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+21.6%

Est. earnings growth+25.4%

Analysts6

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +19% while net margin moved +32% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+19%

Margin effect+32%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

• P/E of 33.7x already prices in growth
• P/E is close to its own historical median of 30.1x
✗ P/B of 7.15x is a steep premium to book

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

33.7x

3Y Median

30.1x

40 monthly readings · mean 30.2x · range 20.8x–47.4x

Sector Median

68.5x

median of 3 sector peers

⚠️Current valuation is approximately 12% above its 3y median of 30.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 51% below the peer median of 68.5x.

vs. its own history

Fair

30.1x median over 40 months · +12%

vs. sector peers

Cheap

68.5x median of 3 peers · -51%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

33.7x

P/B

7.15x

EV/EBITDA

25.7x

PEG

2.10

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 15.8% to 19.6% over 3 years.
Debt is being paid down
Total debt is down 38% over 3 years.
High return on capital employed
ROCE of 24.6% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 23.3% to 18.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 30.5% to 24.6% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 66% against revenue growth of 19% — customers are taking longer to pay.

Red Flags

3 items require attention · 1 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 3.60x — earnings must service borrowings before shareholders see anything.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹14 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 66% against revenue up 19% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 15.8% to 19.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 38% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 51% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 3.60x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 66% against revenue up 19%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 5.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 23.3% to 18.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 18%✓ 19.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 5.9% CAGR
Latest reported year was 15.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 24.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹5,717 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.7x

Fair

Fairly valued against the generic band

P/B Ratio

7.15x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹100.05

Profitable

Profitable on a per-share basis

ROE

18.6%

Strong

Strong capital efficiency

ROCE

24.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.60x

High

High leverage

Revenue Growth (YoY)

15.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

71.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹3,371.1

P/E (Forward)

24.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

19.7%

Good

Healthy core-business profitability

Net Margin

14.5%

Good

Strong bottom-line conversion

Current Ratio

3.48

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

66%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3299.9 / 3403.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

50.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹952 Cr	₹914 Cr	₹1,025 Cr	₹1,129 Cr	+5.9%
EBITDA	₹151 Cr	₹188 Cr	₹189 Cr	₹221 Cr	+13.6%
EBITDA Margin	15.8%	20.5%	18.4%	19.6%	—
PAT (Net Profit)	₹96 Cr	₹128 Cr	₹122 Cr	₹150 Cr	+16.0%
EPS	₹56.63	₹75.78	₹71.46	₹88.25	+15.9%
ROE	23.3%	24.0%	18.5%	18.6%	—
ROCE	30.5%	30.3%	24.7%	24.6%	—
Total Debt	₹47 Cr	—	₹36 Cr	₹29 Cr	-14.7%
Free Cash Flow	₹40 Cr	₹90 Cr	-₹0 Cr	-₹14 Cr	—

🟢 Revenue has grown at 5.9% a year over 3 years.

🟢 EBITDA has grown at 13.6% a year over 3 years.

🟢 EBITDA Margin has risen from 15.8% to 19.6% over 3 years (+3.7 pts).

🟢 PAT (Net Profit) has grown at 16.0% a year over 3 years.

🟢 EPS has grown at 15.9% a year over 3 years.

🔴 ROE has fallen from 23.3% to 18.6% over 3 years (-4.7 pts).

🔴 ROCE has fallen from 30.5% to 24.6% over 3 years (-5.8 pts).

🟢 Total Debt has shrunk at 14.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹40 Cr to -₹14 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹979 Cr

Total Liabilities

₹172 Cr

Total Debt

₹29 Cr

Cash & Equivalents

₹65 Cr

Operating Cash Flow

₹177 Cr

Capex

-₹192 Cr

Shareholding (proxy)

Institutional Holding

10.5%

Insider Holding

58.0%

Corporate Actions

Ex-Dividend Date

17 Nov 2023

Analyst Consensus

Recommendations

4 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹3,699.33

+9.7% vs CMP

Target Range

₹2,782 – ₹4,065

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

3 mixed3 general

What Stylam Industries Holders Saw Early

Simply Wall Street, 15 Oct

Stylam Industries Q1FY27 profit rises 70%, led by margin expansion

scanx.trade, 14 OctCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Stylam Industries Share: Bull Case vs Bear Case for 2026

Univest, 25 Sept

Stylam Industries - FIIs turn buyers after two quarters of selling; 15 stocks rally up to 265%, 6 turn multibaggers

The Economic Times, 22 Jun

Stylam Industries gets BUY from ICICI Direct; 21% upside seen — check price target

Livemint, 23 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

STYLAMIND Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate12.6/20

🟡Financial HealthAdequate11.9/20

🟢GrowthStrong13.1/20

🟡ProfitabilityModerate9.5/15

🔴ValuationDemanding6.5/15

🟡RiskModerate5.1/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 18%19.6%
✗Free cash flow remains positive-₹14 Cr
✓Revenue growth stays above 4% a year5.9% CAGR
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 22%24.6%