Oct 10, 2014

Stylam Industries Ltd: Value and Growth Stocks

In today's stock, I have Stylam Industries Ltd which is in Laminate and Adhesive business. It exports its products over 60 countries.

Stock P/E: 7.62

Debt to equity: 2.00
Debt To Asset: 0.67
Contingent liabilities: 9.20Cr.
Price to Sales: 0.31
Price to book value: 1.70

All three below are better than earlier:
Compounded Sales Growth:
Trailing twelve month: 37.23%
Compounded Profit Growth:
Trailing twelve month: 111.57%

Return on Equity: 21.86%

Stylam Industries business is growing and this is reflecting in quarterly results. Seeing better future in this segment, we can assume better prospect in earning. 

Fundamental is weak due to debt but it is doing capital expenditure.
So, due to better prospects ahead and factual increase in profit, it looks like a good investment opportunity to buy at this cheap valuation.
Another risk is 23% of promoters shares is pledged.