Stylam Industrie (STYLAMIND)
Fast GrowerFairStock Score: 53/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹3,642 |
| Market Cap | ₹6,176.37 Cr |
| P/E Ratio | 36.36 |
| ROCE | 27.41% |
| ROE | 23.45% |
| Dividend Yield | 0% |
| Profit Growth | 70.41% |
| Debt/Equity | 0.04 |
| Sales Growth | 15.48% |
| Promoter Holding | 52.19% |
| 52-Week Range | ₹1,621 — ₹4,150 |
| Sector | Consumer Durables |
| Book Value | ₹471.57 |
Strengths
- Strong capital efficiency: ROE of 23.45% and ROCE of 27.41%.
- Healthy fundamentals indicated by Piotroski F-Score of 7/9.
- Latest quarter net margin is robust: ₹46 Cr net profit on ₹271 Cr sales.
- Promoter holding of 52.19% aligns owner interest with minority shareholders.
Concerns
- Zero dividend yield; investors get no direct cash return.
- Profit growth of 51.23% far exceeds sales growth of 6.46%, raising doubts about sustainability.
- Valuation is expensive at P/E of 26.87 and P/B of 6.32, leaving little margin of safety.
- Debt/Equity is not disclosed, so balance sheet leverage cannot be fully assessed.
AI Analysis
Let me start with the business itself. Stylam has put up numbers that would make any value investor pause with respect: an ROE of 23.45% and ROCE of 27.41%, a Piotroski score of 7/9, and promoter holding of 52.19%. That is the portrait of an efficient, owner-minded operation. But Graham taught me that price is what you pay, and value is what you get. At ₹2,242.20, I am paying ₹3,777 Cr, or 26.87 times earnings and 6.32 times book value. That is rich for a laminates company whose top line grew only 6.46%. The 51.23% profit growth looks exciting, but a 6.46% sales growth behind it tells me this is margin expansion, not yet a durable compounding engine. The latest quarter's ₹271 Cr sales and ₹46 Cr profit imply a net margin near 17%, excellent but vulnerable in a competitive sector. The zero dividend also demands explanation. When a company does not pay a dividend, retained earnings must earn high returns to justify their retention. ROE of 23.45% helps, but P/B of 6.32 means the market is already capitalizing that efficiency. The 52-week range of ₹1,594 to ₹4,150 shows how quickly the stock can shake out; from the high it is down almost 46%. A PEG of 0.93 only works if 51% profit growth continues, and I cannot assume that from this data. Debt/Equity is not given, so I cannot fully sign off on financial risk. I like the business, but I need better proof of growth and a lower price to build my margin of safety.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer