Crorepati Stock: Rs 10000 becomes Rs 2.32 crore in 20 years

crorepati stock: rs 10000 becomes rs 2.34 crore in 20 years | stylam industries

Crorepati Stock: A penny stock has turned mega multibagger in over 20 years, surging a massive 2,32,541 per cent in the period.

The company, headquartered in Chandigarh, manufactures high-pressure laminates, performance laminates (HPL), specialty laminates, exclusive surfaces, acrylic solid surfaces, and compact laminates.

The stock under discussion is Stylam Industries.

Stylam Industries Share Price Today

Stylam Industries' shares on Thursday closed higher for the second straight session at Rs 1992.40 per share.

On Wednesday, the stock rallied almost 10 per cent, closing at Rs 1,850.15 apiece. The company currently has a market capitalisation of Rs 3,338.85 crore.

Stylam Industries: Rs 10000 becomes Rs 2.32 crore

Exactly 20 years ago, at June 25, 2004, the stock traded at Re 0.85 apiece. From this price, the stock has journeyed to Rs 1977.45 per share, as of Thursday, June 27's closing.

An investment of Rs 10,000 made 20 years back on June 25, 2004, at Re 0.85, would now have turned Rs 2,32,54,100 or 2.32 crore, as of the closing price of June 27, 2024.

Stylam Industries Share Price Target 2024

The recent rally in Stylam Industries came after brokerage firm Investec initiated a 'BUY' call, with a target price of Rs 2,362 per share. This target price represents a potential upside of about 18.55 per cent from the current market price.

Investec, in its report, highlighted Stylam Industries' unique approach to marketing and distribution, differing from the market leader's strategies. This has enabled the company to achieve a compound annual growth rate (CAGR) of about 30 per cent in earnings from FY04 to FY24, the brokerage noted. While the per unit revenue for Stylam Industries has lagged behind its peers, the company benefits from superior operating margins.

Looking ahead, Investec predicts that Stylam Industries' incremental expansion offers an attractive return on capital employed (RoCE) profile. The brokerage forecasts a 17 per cent volume CAGR and a 19 per cent revenue CAGR for the laminates business between FY24 and FY26. EBITDA and profit after tax (PAT) are expected to grow at CAGRs of 19 per cent and 11 per cent, respectively, during the same period, and earnings per share (EPS) is expected to grow at an 11 per cent CAGR, Investec notes..

Investec also said that a potential strategic investment could enhance Stylam Industries' technology, distribution, and brand positioning capabilities.

Stylam Industries: Why the stock is rising?

It was reported last month that a Japanese company AICA Kogyo is in talks to acquire a huge stake in the Indian laminate manufacturer Stylam Industries.

As per the media reports, it is speculated that AICA Kogyo is considering to acquire a 14 per cent stake from Stylam's promoters through a Share Purchase Agreement (SPA).

Further, the Japanese company plans to initiate an open offer to acquire an additional 26 per cent stake in Stylam Industries.

Stylam Industries Technicals

Stylam Industries' shares are currently trading above all the key short-term and long-term moving averages viz. 5-day, 10-day, 20-day, 50-day, -100-day, and 200-day exponential moving averages (EMAs).

The stock's Relative Strength Index (RSI) is trending upwards at 79.37. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock has a 52-week range of Rs 1,406.80 and Rs 2,020 on BSE.