Stylam Industries share price target: After years of building an export-led franchise in decorative laminates and premium surface solutions, Stylam Industries is entering a fresh phase of expansion. Domestic brokerage house ICICI Direct has initiated coverage on the stock, highlighting capacity expansion as a key driver of the next leg of growth.
ICICI Direct has initiated a BUY rating on Stylam Industries with a target price of ₹4,000, implying an upside potential of around 21% from the last closing price of ₹3,314. The brokerage has valued the company at 31x FY28E EPS, with a 12-month target period.

The company has begun commercial production at its new Manak Tabra facility, while pricing actions and improving capacity utilisation are expected to support growth over the next few years. Its strong balance sheet, global presence and the entry of Japanese materials company Aica Kogyo into the promoter group have added further elements to the investment story.“Stylam’s capacity expansion, established export franchise, and conservative balance sheet provide the foundation for its next phase of growth.
The ramp-up of the Manak Tabra facility remains the key earnings catalyst with operating margin resilience and capital allocation discipline," it stated. The stock has hit its 52-week high of ₹4,160.25 in July 2026 and its 52-week low of ₹1,603.05 in September 2025.

While the stock is down 7% in 1 month, it has risen 6.5% in 3 months, 52% in 6 months, and 93% in the last 1 year. Meanwhile, it has given multibagger returns in the long term, soaring 198% in 5 years. Why ICICI Direct is bullish? According to the brokerage, the biggest growth trigger for the stock is the commissioning of the 52.5 MSM Manak Tabra manufacturing facility, which began commercial production in September 2026.
The project involved an investment of approximately ₹334 crore. The company expects the plant to operate at an initial capacity utilisation of 25-30% in FY27 and contribute around ₹300 crore in revenue during the year. As utilisation rises, management expects the facility to generate ₹700-1,000 crore in incremental annual revenue over a two-to-three-year ramp-up period, it added.

Moreover, the additional capacity is also expected to support growth in North America, Europe and the Middle East, alongside premium surface demand in India, pointed the brokerage. “Stylam is entering a new phase of growth with the commissioning of its Manak Tabra manufacturing facility (~52.5MSM), which has now commenced production in September 2026.
Management is targeting ~ ₹300 crore in additional revenue in FY27,” ICICI said. The brokerage also sees the company's balance sheet as a key strength. Stylam is net debt-free, maintains strong liquidity and has funded the ₹334 crore expansion primarily through internal accruals.

This provides flexibility to manage working-capital requirements, raw material volatility and the ramp-up of the new facility. Another positive is Aica Kogyo's entry into the promoter group. The Japanese company acquired a 27.1% stake from the previous promoters in February 2026 and subsequently acquired another 12.9% through an open offer, taking its total holding to 40% for around ₹1,525 crore.
ICICI Direct said the relationship could create opportunities in technology, product development, manufacturing expertise and international markets, although potential synergies remain dependent on future implementation. Estimates: Revenue, EBITDA and profit set to grow ICICI Direct expects Stylam's revenue to grow 21.8% in FY27 and 17% in FY28, driven by the new facility and pricing initiatives.

It estimates operating revenue at ₹1,375.5 crore in FY27E and ₹1,608.7 crore in FY28E, compared with ₹1,129.3 crore in FY26. The brokerage expects EBITDA to rise from ₹220.6 crore in FY26 to ₹261.6 crore in FY27E and ₹322.1 crore in FY28E. EBITDA margin is estimated at 19% in FY27E and 20% in FY28E, with initial underutilisation and raw material costs likely to weigh on margins before operating leverage improves.
ICICI Direct projects PAT at ₹175.1 crore in FY27E and ₹216.5 crore in FY28E, compared with ₹149.9 crore in FY26. Adjusted EPS is estimated to increase from ₹88.4 in FY26 to ₹103.3 in FY27E and ₹127.7 in FY28E. The brokerage expects RoCE at 23.3%/23.9% and RoE at 17.8%/18.2% for FY27E/FY28E.

However, it flagged raw material inflation, geopolitical and forex risks, global supply-chain disruptions and execution risks around the capacity expansion as key concerns. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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