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Stylam Industries

Over Valued

SL
Community Contributor
Published
07 Apr 24
Updated
25 Jun 24
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Slade's Fair Value
₹422.00
308.1% overvalued intrinsic discount
25 Jun
₹1,722.35
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1Y
5.1%
7D
4.5%

Author's Valuation

₹422.0

308.1% overvalued intrinsic discount

Slade's Fair Value

Growth

Market Growth rate for next year

* 8.00%

* Keeping it low as growth has been high in last 2 years making the base number big

Compounded annual market growth rate year 2-5

* 12.00%

* Driven by improved domestic market share, new plant, acrylic business & growth in industry

Margin

Pre-tax operating margin for next year

* 12.00%

* Setting margin to company's 10-year average

Pre-tax operating margin (Target)

* 10.14%

* Setting it to the industry average. Number also aligns with the company staying competitive in the market

Reinvestment

Sales to Capital ratio (Current)

* 2.2

Sales to Capital ratio (Target)

* 1.84

* Industry average is 1.84 & Company's 10 years average is 1.56. With time company should reach to industry average

Discount Rate (Cost of Capital)

* 11.67%

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