Grab discount upto 30% & valuable freebies under Merry Christmas - Happy New Year 2019 Offer. Click here for details.

SARAL GYAN CHRISTMAS - NEW YEAR 2019 OFFER

PAST PERFORMANCE >>> HIDDEN GEMS, VALUE PICKS & WEALTH-BUILDER >>>  VIEW / DOWNLOAD

SERVICES:        HIDDEN GEMS    |    VALUE PICKS    |    15% @ 90 DAYS    |    WEALTH-BUILDER

SUBSCRIPTION:        FREE SUBSCRIPTION      |      PAID SUBSCRIPTION     |      PAYMENT OPTIONS

Thursday, December 13, 2018

Grab Techno-Funda Stock Pick 2019 Report for Free

Dear Reader,

We are pleased to inform you that we have released Techno-Funda Stock Pick 2019 Report on 12th Dec 2018. The stock selected under this report is a small cap company with market capital of less than 500 crores.

This report covers both technical as well as fundamental analysis about the company along with positive developments in the company as well as sector. The stock offers significant upside potential from current levels over next 1 to 2 years.

Techno-Funda Stock Pick 2019 report is a detailed report which covers company's background, Industry outlook, positive developments, financial performance of the company along with peer group comparison, key concerns & risks, technical analysis, fundamental analysis and Saral Gyan recommendation.

To encourage investment in equities during current scenario when overall market sentiments are negative, we decided to share this report for free. This is a complimentary report for our members. We are confident that you will find our research work useful in making informed investment decision.

To receive our Techno-Funda Stock Pick 2019 report, simply fill up the form below. Once submitted, you will receive the report directly in your inbox.

Regards,
Team - Saral Gyan.



Tuesday, December 11, 2018

Know Your Risk Tolerance Before Investing in Equities

Dear Reader,

Stock prices were on rise till Jan'18 with significant increase in retail investors participation during last couple of years. As many new investors get into stock market during such times, its always important for an individual investor to understand what is his/her investment profile and risk tolerance.

In 2018, with lot of pessimism building around equity market due to global factors, deteriorating of domestic macros with rise in crude oil prices, weakening rupee and liquidity crisis with IL&FS default, we have seen severe correction in broader market with Mid & Small Cap Index falling by more than 24% and 33% respectively from all times high made in January this year. Stock prices of many mid and small cap companies have seen a steep fall in the range of 30% to 60% or even more from highs made in beginning of this year. In such situation every investor looking to create wealth is confused whether to exit, hold or enter the stocks and at what levels to enter or exit.

We always suggest our members not to time the market and follow a disciplinary approach while investing in equities with medium to long term perspective. Its important to know, whether you would be able to hold on your positions in case stock market tanks? However, such severe corrections do not come very often and hence must be considered as buying opportunity to aggressively add on good quality stocks at discounted prices keeping a long term view. If you are a long term investor, its wise to be greedy when others are fearful.

Historical data indicates that most of the new investors get fascinated towards stock market to make quick bucks and finally end up loosing their capital as they cant hold on their stocks in case market corrects and sell out their stocks in a panic. Stock market is not a money making machine, you need not to be greedy on rising market or fearful when stock market falls, simply buy right and sit tight having sufficient patience with you to see your investment growing over a period of time.

We strongly recommend our members (who are new to stock market) to kindly go through our Asset Allocation Questionnaire to understand your investment profile and risk tolerance.

By answering 15 questions about your risk preferences, you can find out your investment profile and risk tolerance. This score will determine the asset allocation that best suits your risk preferences, you can use our simple excel workbook - Saral Gyan Asset Allocation Questionnaire which suggests the optimum split between cash, bonds and stocks.

The questions are simple to answer, with options provided to select answers using drop-down list, check boxes and radio buttons. They are designed to determine your tolerance to investment volatility, the size of your existing financial cushion, your time horizon, and what you want your investment to achieve.


Saral Gyan Investment Risk Profile & Asset Allocation workbook - Download

The questions asked in the excel workbook includes:

1.What is your total annual income before tax (including investment dividends but not including employment bonuses)?
2.How many sources of income do you have?
3.What is the value of your liquid (or investable assets)? This includes cash plus any easily sold investments like Gold, Bonds and Stocks.
4.What yearly income do you want from this investment portfolio?
5.How long do you intend to hold this investment portfolio?
6.What would you do if your investment portfolio fell in value by one-fifth (20%) over the course of 12 months?
7.What characteristics would you prefer your investments to have?
8.Do you prefer investments which have low volatility and low return, or investments which have high volatility and high returns?
9.What do you want this investment portfolio to do? Preserve capital, generate income, generate income with some capital appreciation etc.
10.What volatility (or risk) are you prepared to tolerate?
11.In the next five years, what percentage (if any) of the portfolio do you plant to sell to realize cash?
12.What kind of investments do you currently own, or would prefer to own? Domestic, international, aggressive, fixed income etc.
13.Assuming a time horizon of ten years, what annual return do you want?
14.Who do you normally get investment advice from?
15.How would you rate your current skill in managing investments?

Your answer to each question is rated with a score. The total score is used to suggest an asset allocation that is appropriate to your risk preferences; the workbook suggests a split between:

■ Cash
■ Bonds (high-yield, long-term, intermediate and international)
■ Stocks (large cap, mid cap, small cap and micro cap stocks)

You can also find out what kind of investor you’re considered; an income investor, a long term investor, an aggressive, moderate or conservative investor. Really helpful, do it yourself.


IMP Note: As our excel workbook is macro enabled file, do enable the macro's while using the file. If you do not understand macro's, do not worry. once you open the file, excel automatically ask you whether you want to enable or disable macro's, simply click on enable and proceed.

If you have patience and want to add extra power in your portfolio, start investing some portion of your savings in fundamentally strong small and mid cap companies - Hidden Gems & Value Picks.   

Time has shown that smart investors have made their fortune by investing in equities in long term. None other asset class can match giving you such extra ordinary returns. Yes, its important for you to invest in right set of companies at right price with medium to long term perspective. If you think to invest in stocks for period of 3 months or 6 months, we suggest you to stay out of stock market because you are not investing, you are betting on volatility of stock market which could be risky.

New year 2019 is just few weeks away and to celebrate the beginning of new year with right investment decisions at such an opportune time, we decided to pass on the maximum benefits to our readers by offering great savings and valuable freebies with our Merry Christmas - Happy New Year 2019 Offer. We suggest our members to consider ongoing market correction as a buying opportunity and invest in high quality small and mid cap stocks. Attractive discounts & valuable freebies which make our offer special for our readers are as under:

1. Discount up to 30% on combo pack subscription (valid up to 05th Jan'19 only)
2. Portfolio of 10 Small & Mid Cap Stocks for 2019 (to be released on 1st Jan'19)
3. Hidden Gems Flash Back Report - 2018 (to be released on 16th Dec'18)
4. Value Picks Flash Back Report - 2018 (to be released on 30th Dec'18)
5. Existing Portfolio Health Check Up under Wealth-Builder subscription
6. Special Report - 6 Hidden Gems Stocks to Buy / Accumulate (Released on 30th Sep'18)
7. Special Report - 6 Value Picks Stocks to Buy / Accumulate (Released on 02nd Oct'18)
8. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.

Below table indicates subscription services and discounted prices valid up to 05th Jan'19.

Saral Gyan Merry Christmas - Happy New Year 2019 Offer
SARAL GYAN
SUBSCRIPTION SERVICE
CHRISTMAS NEW YEAR OFFER
DISCOUNTED PRICE
PAY ONLINE 
CARD / NET BANKING 
Hidden GemsRs. 10,000 9,000
Value PicksRs. 6,000 5,400
Wealth-BuilderRs. 20,000 18,000
15% @ 90 DaysRs. 4,000 
Combo 1: HG + VP + WB + 15%Rs. 40,000 28,000
Combo 2: HG + VP + 15%Rs. 20,000 15,000
Combo 3: HG + VPRs. 16,000 13,000
Combo 4: HG + 15%Rs. 14,000 11,500
Combo 5: VP + 15%Rs. 10,000 8,500

Simply choose the subscription service / combo subscription you would like to opt and click on SUBSCRIBE! link in above table to make online payment using your debit / credit card or net banking facility. In case if you are not comfortable in making online payment, click here to know about our other payment options and bank details.

Do contact us in case of any queries, we will be delighted to assist you.  

Wish you happy & safe investing!

Regards,
Team - Saral Gyan. 

Sunday, December 9, 2018

Opportunity to Grab Huge Discounts & Valuable Freebies!

Dear Reader,

It gives us immense pleasure to inform you that we are celebrating this festive season by giving maximum discounts and freebies to our members under Saral Gyan Merry Christmas - Happy New Year 2019 Offer, this is a limited period offer and closes on 5th Jan'19 at 11.59 PM.

Since 2010, Saral Gyan team has published hundreds of articles providing insight to equity market and today cherish association of more than 38,000 members. Articles published on our website received lot of appreciation as it helped our readers to make educated and smart investment decisions based on facts.

During past 8 years, we launched suitable services to help Investors to create wealth by investing in Indian stock market. Its appreciation and support of our readers that one of our most admired service - Hidden Gems ranks on top not only in performance but also on Google search engine. Try it out yourself by searching "Best Small Caps" or "Unexplored Multibaggers" or "Hidden Gems & Value Picks" on Google, you will find our website www.saralgyan.in featuring on top in search results. Its your appreciation and word of mouth publicity which make our website featuring on 1st position in Google.

Think Long Term & Be Greedy when Others are Fearful!

Smart investors do not listen to the herd and take a rational approach with their wise & intelligent thinking. As rightly quoted by Warren Buffett - Be Fearful when Others are Greedy and Greedy when Others are Fearful. At the current scenario, when Small & Mid Cap Index is already down by 30.7% and 19.7% respectively from their peak made in January this year and significantly underperformed Sensex & Nifty, no body want to touch that space. Most of the liquidity in small & mid caps has dried up and found its way to large caps over last 10 to 12 months. At this juncture, large caps looks fairly valued or expensive in terms of valuations, however selective small & mid cap companies with robust businesses look attractive to reasonable and can reward long term investors in big way.

We firmly believe that this is one of the best wealth creating opportunity for long term investors. The ongoing slaughter in small & mid caps must be considered to pick right businesses at attractive valuations. We must have courage and conviction to pick the right set of companies when there are no takers during current downturn instead of chasing stock prices during upturn. If you are a long term investor, its wise to be greedy when others are fearful.

We always advice our readers to take a systematic approach and avoid timing the market while investing in equities with a long term horizon. However, such severe corrections do not come very often and hence must be considered as buying opportunity to aggressively add on good quality stocks at discounted prices keeping a long term view.

New year 2019 is just few weeks away and to celebrate the beginning of new year with right investment decisions at such an opportune time, we decided to pass on the maximum benefits to our readers by offering great savings and valuable freebies with our Merry Christmas - Happy New Year 2019 Offer. We suggest our members to consider ongoing market correction as a buying opportunity and invest in high quality small and mid cap stocks.

Attractive discounts & valuable freebies which make our offer special for our readers are as under:

1. Discount up to 30% on combo pack subscription (valid up to 05th Jan'19 only)
2. Portfolio of 10 Small & Mid Cap Stocks for 2019 (to be released on 1st Jan'19)
3. Hidden Gems Flash Back Report - 2018 (to be released on 16th Dec'18)
4. Value Picks Flash Back Report - 2018 (to be released on 30th Dec'18)
5. Existing Portfolio Health Check Up under Wealth-Builder subscription
6. Special Report - 6 Hidden Gems Stocks to Buy / Accumulate (Released on 30th Sep'18)
7. Special Report - 6 Value Picks Stocks to Buy / Accumulate (Released on 02nd Oct'18)
8. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.

Below table indicates subscription services and discounted prices valid up to 05th Jan'19.

Saral Gyan Merry Christmas - Happy New Year 2019 Offer
SARAL GYAN
SUBSCRIPTION SERVICE
CHRISTMAS NEW YEAR OFFER
DISCOUNTED PRICE
PAY ONLINE 
CARD / NET BANKING 
Hidden GemsRs. 10,000 9,000
Value PicksRs. 6,000 5,400
Wealth-BuilderRs. 20,000 18,000
15% @ 90 DaysRs. 4,000 
Combo 1: HG + VP + WB + 15%Rs. 40,000 28,000
Combo 2: HG + VP + 15%Rs. 20,000 15,000
Combo 3: HG + VPRs. 16,000 13,000
Combo 4: HG + 15%Rs. 14,000 11,500
Combo 5: VP + 15%Rs. 10,000 8,500

Simply choose the subscription service / combo subscription you would like to opt and click on SUBSCRIBE! link in above table to make online payment using your debit / credit card or net banking facility. In case if you are not comfortable in making online payment, click here to know about our other payment options and bank details.


Time has shown that smart investors have made their fortune by investing in equities in long term. None other asset class can match giving you such extra ordinary returns. Yes, its important for you to invest in right set of companies at right price.

Start investing in Hidden Gems & Value Picks of stock market to get rewarded by creating a Wealth-Builder portfolio in long run. Remember, "If you want your Money to Grow, Equities is the only Way to Go" in long term. If you think to invest in stocks for period of 3 months or 6 months, we suggest you to stay out of stock market because you are not investing, you are betting on volatility of stock market which could be risky.

Its our mission to ensure that you reap the best returns on your investment, our objective is not only to grow your investments at a healthy rate but also to protect your capital during market downturns. We also take this as an opportunity to share the returns on investment given by one of our most admired service Hidden Gems during last 8 years.

Hidden Gems (Unexplored Multibagger Small Cap Stocks) continue to shine giving average returns of whopping 145.7% to our Hidden Gems subscribers compared to 50.7% returns of small cap index during last 8 years.

We are glad to inform you that 41 Hidden Gems out of 76 (released till Dec'17) have given more than 100% returns to our members during last 8 years. Moreover, 33 stocks out of these 41 have given returns in the range of 150% to 1500% during the same period.

As we made most of these reports public, you can access read / download our research reports by clicking on the Read / Download link:

1. SAB TV NETWORK >>> Rec. Date: 05 Sep'10 >>> ROI: 892% >>> Read / Download

2. DE NORA >>> Rec. Date: 07 Nov'10 >>> ROI: 210% >>> Read / Download


3. CAMLIN FINE >>> Rec. Date: 27 Mar'11 >>> ROI: 722% >>> Read / Download


4. WIM PLAST >>> Rec. Date: 30 Aug'11 >>> ROI: 629% >>> Read / Download

5. KOVAI MEDICAL >>> Rec. Date: 27 Oct'11 >>> ROI: 548% >>> Read / Download


6. CERA SANITARY >>> Rec. Date: 24 Dec'11 >>> ROI: 1444% >>> Read / Download

7. SUPERHOUSE >>> Rec. Date: 29 Feb'12 >>> ROI: 158% >>> Read / Download

8. MAYUR UNIQ. >>> Rec. Date: 31 Mar'12 >>> ROI: 616% >>> Read / Download

9. PREMIER EXPLO. >>> Rec. Date: 22 Jul'12 >>> ROI: 236% >>> Read / Download

10. ROTO PUMPS >>> Rec. Date: 05 Aug'12 >>> ROI: 418% >>> Read / Download

11. TIDE WATER OIL >>> Rec. Date: 30 Oct'12 >>> ROI: 169% >>> Read / Download

12. ACRYSIL >>> Rec. Date: 25 Nov'12 >>> ROI: 441% >>> Read / Download

13. BAMBINO AGRO >>> Rec. Date: 25 Dec'12 >>> ROI: 249% >>> Read / Download

14. TCPL PACKAGING >>> Rec. Date: 31 Jan'13 >>> ROI: 482% >>> Read / Download


15. ATUL AUTO >>> Rec. Date: 28 Feb'14 >>> ROI: 127% >>> Read / Download


16. RANE BRAKE >>> Rec. Date: 31 May'14 >>> ROI: 163% >>> Read / Download

17. DYNEMIC PROD. >>> Rec. Date: 29 Jul'14 >>> ROI: 193% >>> Read / Download

18. ASIAN GRANITO >>> Rec. Date: 29 Sep'14 >>> ROI: 97% >>> Read / Download

19. CONTROL PRINT >>> Rec. Date: 30 Nov'14 >>> ROI: 88% >>> Read / Download

20. PLASTIBLENDS >>> Rec. Date: 31 Jan'15 >>> ROI: 59% >>> Read / Download

21. MOLD-TEK PACK >>> Rec. Date: 22 Mar'15 >>> ROI: 137% >>> Read / Download

22. VISAKA IND >>> Rec. Date: 05 Jul'15 >>> ROI: 205% >>> Read / Download

23. CHEMFAB ALKAL. >>> Rec. Date: 06 Sep'15 >>> ROI: 125% >>> Read / Download

24. ULTRAMARINE >>> Rec. Date: 11 Oct'15 >>> ROI: 205% >>> Read / Download

25. STYLAM IND. >>> Rec. Date: 08 May'16 >>> ROI: 166% >>> Read / Download

We are confident that we will continue to hunt best Hidden Gems from universe of small caps by doing authentic, in-depth and unbiased research work and support our members to make educated investment decision.

Through Hidden Gems and Value Picks, we're providing you opportunities to invest in such small / mid caps stocks today. Infosys, Pantaloon, Bajaj Finance, Glenmark were the small cap stocks in past and today are the well known companies falling under mid and large cap space.

The stocks we reveal through Hidden Gems & Value Picks are companies that are either under-researched or not covered by other stock brokers and research firms. We keep on updating our subscribers on our past recommendations suggesting them whether to hold / buy or sell stocks on the basis of company's performance and future outlook.

Moreover, under our Wealth-Builder service, we encourage our members to replicate our Wealth-Builder portfolio by investing in selective high quality small and mid cap companies. These companies are reporting 20-30%+ annualized growth and got their due share of re-rating and delivered exceptional returns to our members so far. Since 1st Jan 2013, Nifty has given returns of 79.7%, Sensex returns is 82.2% where as Wealth-Builder portfolio has given returns of 247.5% returns to our members. In case you have not yet started building a portfolio of high quality and fundamentally strong growth stocks for long term wealth creation, please find below the Wealth-Builder portfolio allocation & performance update for your reference.
We believe, investing in Wealth-Builder portfolio with regular portfolio review from our end can help you achieve market beating, very good returns over a longer team and help you take care of yourself and your family needs, which ultimately lead to a healthy and wealthy life after retirement.

Now you can add power to your equity portfolio by investing in best of small & mid cap stocks - Hidden Gems & Value Picks. Enjoy great savings and receive valuable freebies during Saral Gyan Merry Christmas - Happy New Year 2019 Offer by availing subscription of our Hidden GemsValue Picks & Wealth-Builder services.

Hurry! Merry Christmas - Happy New Year 2019 Offer is for limited period and will close on 05th Jan'19 at 11.59 PM. Click here for details.

Do contact us in case of any queries, we will be delighted to assist you.

Wish you happy & safe Investing.

Regards,
Team - Saral Gyan.

Saturday, December 8, 2018

How to Calculate CAGR of your Investments?

Dear Reader,

This article will let you know how to calculate the compound annual growth rate, or CAGR, in Excel. You’ll also learn about some of the limitations.

Note: You can download our excel file to calculate CAGR returns, click on download link available at bottom of the article.

Different investments go up or down in value by different amounts over different time periods. Investors need a method of comparing one investment against another, especially if the returns have been volatile, or if investments and withdrawals are at irregular dates.

CAGR is the annual return of an investment assuming it has grown at the same rate every year. It’s a common concept; for example, the one, three and five-year returns on mutual fund fact sheets are CAGR values.

One method of calculating CAGR is given by this equation.

 There are three parameters in this equation.
  • start value of the investment
  • end value of the investment
  • number of years between the start and end value
You can also manipulate this formula to give, for example, the number of years required to grow an initial investment from a start value to an end value, given the growth rate..

Below tables use the above formulas to calculate CAGR.


You can also rearranges the formula so you can calculate the final amount (given the initial amount, CAGR, and number of years) and the number of years (given the initial and final amount, and CAGR).

You can also calculate the Compound Annual Growth Rate using Excel’s XIRR function – check out the screen below for an example.
 

XIRR takes three arguments:
  • The first is a range of cash flows into or out of the investment. Invested amounts are positive, but withdrawals are negative.
  • The second is a range of dates corresponding to the investments or withdrawals,
  • The third is a guess value for the CAGR (XIRR uses Newton-Raphson iteration, so it needs a guess value tostart the iteration).
XIRR is flexible, and can also given you the CAGR given investments and withdrawals at irregular dates. As an example, examine the screengrab of the Excel spreadsheet.

CAGR has some limitations that investors need to be aware of:
  • CAGR hides volatility by assuming that investments grow at a constant rate. Volatility is an important factor in managing investment risk and can’t be ignored.
  • It’s based on historical data, and can’t be relied on as the only method of predicting future value.
  • CAGR can be manipulated by picking the time period over which it is measured. An unscrupulous fund manager can, for example, choose a start date with an unusually low investment value.
You can download our excel file which contains examples demonstrated in this article and can use the same to find out CAGR of your investments.

CAGR Calculator excel file - Download

Note: You’ll need to enable the Analysis Toolpack to use the XIRR function.

Regards,
Team - Saral Gyan

Sunday, December 2, 2018

Stylam Industries - Our 3-Bagger Stock in 2.5 Years

Dear Reader,

We are pleased to inform you that our Hidden Gem stock of April 2016 - Stylam Industries Ltd (BSE Code: 526951) which was released on 8th May'16 is our 3-Bagger stock giving absolute returns of 224% to our Hidden Gems members within period of 2.5 years. Our team suggested Buy on Stylam Industries Ltd at price of Rs. 217.80 on 08 May'16 with a target price of Rs. 430. Later when target was achieved, we advised our members to continue to hold the stock. 

Stylam Industries has made its 52 week high of Rs. 890 in August this year and today closed at Rs. 705 giving as on date returns of 224% to our Hidden Gems members.

Below is the summary of Stylam Industries Ltd shared by our team under Hidden Gem stock of April'16 released on 08th May 2016.

Note: This report is shared only for the purpose of information and not an investment advice. Kindly carry out your own due diligence in case of investment in Stylam Industries. 

1. Company Background:

Stylam Industries Limited (Stylam) manufactures high pressure laminates for home and industry use, under the brand name ‘STYLAM’. It offers decorative, compact industrial, fire retardant, fabric based, post forming, cabinet liner and metal laminates. These products constitute basic interior building materials responsible for residential and commercial space attractiveness, safety and security.

Company is the pioneer in up-bringing the decorative laminates in India. Company’s capability to provide end-to-end high quality decorative laminate designs has helped company to consistently innovate and create value-added products for its clients.

Stylam was set up by late Mr. N R Aggarwal in 1991, by the name of Golden Laminate Pvt Limited. Later in 1995, company got listed on BSE as a public limited company. The company changed its name from Golden Laminates Ltd. to Stylam Industries Ltd. in January 2010.

Stylam is promoted by Jagdish Gupta and Satish Gupta. Jagdish Gupta is the managing director and Satish Gupta, executive director, manages production and marketing operations of the company. Stylam headquarter is at Chandigarh and the company has its manufacturing facility in Panchkula (Haryana).

Stylam manufactures high pressure decorative environmental friendly laminates. The organization specializes in manufacturing premium quality wide array of laminates and adhesives. Over the years, Stylam has developed products that have become benchmark in the laminate and adhesive industry. Stylam become foremost manufacturing company of high pressure laminates, adhesives, exterior cladding, exterior flooring and door skins throughout PAN India and across the globe.

Stylam today has state-of-the-art manufacturing plant of laminate and adhesive at Panchkula near to Chandigarh with installed capacity of around 7 million (60 lakhs) sheets per annum. The company has witnessed remarkable growth from past 25 years of excellence in producing high quality laminates.

Stylam is well equipped with advanced technology machines with latest sophisticated moulds of various finishes from France & Germany to assure maximum production of laminates in minimum time. The back sanding of the laminates is done by the ITALIAN IMEAS Machine, one of the best manufacturers of sanding machines in the world.

Product Range

Stylam decorative laminates: These are suitable for a wide range of applications in both home furniture and professional environment like wooden claddings/lining of walls and columns, lift linings, doors, shelves, vanity units, table tops, worktops, office partitions, counters, cubicles, store fittings, desks, storage units etc. Stylam decorative laminates are available in wide range of colours in Solids and Woodgrains designs and in many evergreen and new texture finishes and are available in 5 different sizes to cater to varying needs.

Stylam Metallic (metal foil) laminates: These laminates provide a modern decorative and innovative appeal to interiors. Stylam Metallic laminates have bright and reflective surface aspects which render the ambience a modern and sleek look. These laminates are ideal for use in the hospitality, interior design, gaming, entertainment, retail, display and furniture industries.

Stylam Compact laminates: These are formulated with inner core of celluloid fibres impregnated with special thermosetting resins. These resins and the special heat and pressure cycles impart properties of a solid, load bearing hard laminate, which is resistant to wide range of atmospheric and chemical agents for use in internal and external atmospheric conditions. High values of flexural strength and tensile strength ensures that these laminates are suitable for saw cutting, drilling, machining and punching as per requirement.

Stylam Exterior laminates: These laminates are manufactured by European technique to withstand adverse action of atmospheric Ultra Violet Rays and to withstand exterior atmospheric effects with minimum fading of colours.

Adhesives: Company has developed adhesives with decades of understanding and expertise in the furnishing industry. Company offers highly specialized range of adhesives suited for decorative laminates, wood and other industrial uses. Laminates and wood are extremely versatile mediums. Therefore, only specialized and high quality adhesives will ensure their application.

Stylam has recently launched the pre-laminated particle boards on wood base. They are laminated on both surfaces with imported design paper by short cycle lamination. The products are known for color-fastness and being eco-friendly and conforming to the above standards.

Globally Renowned Quality Credentials

The company has ISO 9001:2008, FSC, Greenguard and many more environmental related credentials for manufacturing laminates and adhesives.  Today, Stylam has a strong brand presence in all over India and around the world. Stylam is recoginized as Star Export House from the Govt. of India; company exports to more than 80 countries across globe including important markets - USA, Asia, Australia, Middle East, Europe, Russia and Africa

i) Greenguard – By using Greenguard certified laminates, one can substantially reduce or eliminate the negative effect of toxic emissions on the nature and the health of occupants and habitants. This ensures superior indoor air quality and increased work productivity of staff in case of commercial establishments as it is healthier for the people living in it.

ii) FSC - The Forest Stewardship Council (FSC) is an international not for-profit, multi-stakeholder organization established in 1993 to promote responsible management of the world’s forests. As part of its corporate responsibility towards sustainable forest development, Stylam is among the very few laminates manufacturer who has been awarded the FSC certification by Rain Forest Alliance, Indonesia.

iii) CE - Stylam Industries Limited has achieved pioneer European CE Certification for both Internal and External application Compact laminates range by ITC Inc., Czech Republic and has fulfilled all the requirements as applicable as per the harmonized standard EN 438-7:2005. Stylam is the first laminate manufacturer in India and among very few in the world to be awarded this coveted certification.

iv) Green Label - The Singapore Green Labelling Scheme Secretariat has granted Stylam Industries Limited the right to use the Singapore Green Label for Stylam High Pressure Laminates for environmentally improved low emission low toxicity.

v) ISO 9001:2008 - Stylam Industries Limited being awarded the latest ISO 9001:2008 certification for the complete range of laminates manufactured from certification agency accredited with reputed certification agency JAS-ANZ.

vi) ISO 14001 - World’s most recognized environmental management certification standard. Environmental management system certification, ISO 14001, basically requires the organization to monitor and manage its impact on the environment.

vii) OHSAS 18001 - Includes Policy and commitment, Hazard identification, risk assessment & risk controls, Legal requirements, Objectives and Programs, Organization and personnel, Training, Communication and Consultation, Documentation and records, Operational Controls, Emergency Readiness, Measurement and monitoring, Accident and incident investigation, corrective and preventive action, Audit and Review, and Application and Relevance in the Industry.

viii) BIS - Stylam Industries has achieved ISI certification as per IS:2016-1995 from Bureau of Indian Standards for its thin laminates range of 0.8 mm and 1.0 mm thickness.

ix) Biocote – Stylam Industries HPL laminate has achieved the Biocote minimum antibacterial performance requirement of 95% “Reduction against the initial for E.Coli and MRSA” according to ISO 22196: 2011 (certificate of antibacterial) analysis.

x) EXOVA - This determines the performance if product subject to its specifications. The test is performed in according to a specified procedure for measuring the lateral spread of flame along the surface of a product oriented in vertical position.

Understanding Laminates as a Product

Laminates, also known as Sunmica, is commonly used for furniture fabrication purpose.  Because of excellent durability, these Laminates can be used as substitutes to veneer, melamine, paints, varnish and furniture foil.

Laminates are broadly classified into 2 types - High Pressure Laminates (HPL) and Low Pressure Laminate (LPL), the actual difference in these 2 type of laminates is mainly due to the manufacturing process that goes into developing these products.

HPL is manufactured under pressures of 70 to 100 bars and temperatures of 270 to 320 degrees Fahrenheit using adhesives. On the other hand LPL is developed under pressures of 20 to 30 bars and temperatures of 330 to 375 Fahrenheit with no adhesives.

The main difference between the two products is the price & durability. LPL is available for much cheaper prices than HPL. On the other hand, high pressure products score high on durability as compared to LPL.

Materials used for developing HPL and LPL include impregnating layers of Kraft paper. It can be defined as a cardboard or firm paper. The paper is generally impregnated with melamine resins to create a laminate. After that, the product is merged with a decorative film layer. The final straw is to attach it to a wooden substrate. The bases widely used include fiberboard or particle boards. Thus, the final product is on the table for use. These products are widely used for designing furniture, walls, floors, countertops, kitchen tops and much more.

Types based on Usage - Based on the final or intended use of the product, the laminates are of two types viz. Decorative and Industrial. For decorative laminates the look and feel are the important aspects as they are commonly used to decorate and protect wooden furniture, while for industrial laminates the focus is more on having a surface that has higher strength, higher resistance to scratches and wear and tear, and which is very durable. Industrial use products such as circuit boards are made using industrial laminate materials.

The High Pressure Laminates (HPL) drives the market mainly due to three key features:
  • Design & Style Trends – New colours and patterns representing style and panache must continue to hit the market. These products must also score high on longevity and usability.
  • Global Accessibility – Many companies are looking to target the international markets by developing unique collection of product range for Europe, Asia and North America.
  • Technology – Various companies that produce High Pressure Laminates are now looking to implement various technologies to create products where solid colours coordinate with patterns to provide a better end product.
Laminate Industry Outlook

Rebounding construction activity, high credit availability, increased interest in home decor and interior improvement options, and a surge in demand for non-residential upgrades, will provide ample opportunities for decorative laminates industry to grow by leaps and bounds. High Pressure Laminates are put to use for churning out a large variety of building components such as cabinets, countertops, store fixtures and wall panels. The enhancement of this industry and continuous evolution and implementation of these products will always open doors for sales growth amongst the people that consider value for money. In addition, laminate manufacturers continue to focus on improved textures and printing techniques that rival the aesthetics of solid wood, natural stone and other materials, but at a lower cost.

The growth of laminate industry is mainly driven by increasing demand from housing market and growing significance of new construction industry. The Indian real estate market is expected to touch US$ 180 billion by 2020. The housing sector alone contributes 5-6 per cent to the country's Gross Domestic Product (GDP).

In construction, after cement, plywood laminate and steel related products are essential part right from initial brick to final stage of furnishing; the demand for these products is directly related to the growth of infrastructure and real estate sector, the demand for company’s products is expected to remain buoyant.

In the period FY08-20, the market size of this sector is expected to grow at a CAGR of 11.2 per cent. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.
Laminates have become an indispensable part of big and evolving segment in housing sector, it is widely used in furniture, modular kitchen as well as in flooring. The increasing demand of better interiors are major triggers for demand of laminates.

The domestic laminates industry is highly fragmented with majority of sector comprising unorganized players leads to pricing pressure for the players in the industry. However, the implementation of goods and service tax (GST) in the near future will provide an impetus to organized players in the laminate industry. In the exports segment, demand has been stable on account of shift from the wood based panel products to engineered panel like MDF and particle board.

India is the one of the largest exporters of the laminates in the world. Players with the establish track record of delivering quality products in the export markets, including Stylam have been consistently able to register growth in turnover over the years despite the global slowdown though the prospects of the company will be primarily driver by the demand from the real estate sector and its ability to manage currency fluctuations.

2. Recent Developments: (as on 08 May'16)

i) Stylam Industries wins Power Brand Rising Star Award 2016 – 11th Apr 2016

Planman Media – a journalism, through its ‘Power Brand Rising Stars’ platform recognizes promising brands that have shown sustained growth over the past and have been able to create a huge impact etching a strong impression to ‘elevate’ and capture the imagination of a resurgent India.

Given the unmatched capabilities and competitiveness of Stylam Industries Ltd. amidst decorative laminate & adhesive industry, the organization was selected for the Power Brands Rising Star Award 2016 on account of its superior Brand Equity assessed through research on Brand Image & Perception, Brand Performance, Brand Loyalty, Brand Awareness and Brand Association. The award was conferred at a scintillating ceremony held in the Capital, New Delhi presided over by Dr. Najma A. Heptullah Hon’ble Union Minister of Minority Affairs, Sh. Syed Shahnawaz Hussain with others of India Inc. in attendance.

ii) Stylam Ind emerges as a leading exporter of laminates in Italy – 31st Jan 2016

Stylam Industries has emerged as country prominent exporter of laminates in Italy. The demand of products of company in Italy is on rise due to their astonish designs and quality. Stylam is specialist in manufacturing avant-garde premium quality wide array of laminates, exterior cladding, exterior flooring and adhesives. The company is also a leader in manufacturing high quality environment-friendly decorative laminates in India.

Stylam has established itself as a strong Indian player with great significance on exports. Being a star export house of laminates and having realized the demands of international markets, company has expertise in understanding the global design requirement and fulfilling them respectively. Company has developed products that have become benchmark in the laminate industry. At present, Stylam laminate has a strong brand presence in more than 80 countries and company intent to take this number to 100 plus countries in this fiscal year.

Moreover, Stylam has a committed R&D division which takes constant steps to evolve with global markets. The company has been investing heavily in the R&D.

Recently, the company has also introduced anti bacteria and chemical resistant laminates in the country.  The company has a passionate group of workforce who travel round the world to develop and innovate with laminates designs with global suitability.

iii) Development of New Building at Panchkula IT Park, Haryana – 2nd Sept 2015

To put all the inventiveness measures under one roof, this includes development of new designs, finding of new vendors, to study product dynamics and to explore market for export and domestic business; at their separate location at Panchkula Technology Park, Haryana. The construction of building having built-up areas of 20697.200 sq. mtrs is almost complete.

The company has planned to lease out portion of constructed building to other players for commercial office space and for service sector businesses. The building will be operational before the close of this financial year.

iv) Stylam Industries embarks on Expansion Plan – 8th Jun 2015

The company is putting up an 8,000-tonne hydraulic press of 6 x 14 feet, and three 4 x 8 feet production lines, which would be the first of its kind in terms of technology and innovation in the world of laminates. As per management, this environment-friendly and energy conservation know-how will result in less carbon emission and less power consumption.

After this expansion, Stylam's production capacity will increase by 6 million (60 lakh) sheets a year. The automated cutting edge technology will boost the quality of products and increase efficiency with less human intervention. This will help company to extend its outreach in the Indian market with the aim of growing the domestic business along with exports as the total production will increase to match the demand on both fronts. 

The new hydraulic press would be fully operational by this year and this will make Stylam one of the largest manufacturers of laminates in Asia. The company is one of the world's top exporters, with a major presence in European markets.

Stylam Industries has one unit each at Panchkula and Ramgarh in Haryana and the new facility is coming at Raipur Rani, in the vicinity of the existing units with an approximate cost outlay of Rs. 45 crore.

3. Financial Performance:

Stylam Industries standalone net profit rises 7.35% in the December 2015 quarter

Net profit of Stylam Industries rose 7.35% to Rs 2.92 crore in the quarter ended December 2015 as against Rs 2.72 crore during the previous quarter ended December 2014. Sales rose 7.67% to Rs 58.09 crore in the quarter ended December 2015 as against Rs 53.95 crore during the previous quarter ended December 2014.

Stylam Industries standalone net profit rises 13.30% in the September 2015 quarter

Net profit of Stylam Industries rose 13.30% to Rs 2.64 crore in the quarter ended September 2015 as against Rs 2.33 crore during the previous quarter ended September 2014. Sales rose 17.26% to Rs 60.25 crore in the quarter ended September 2015 as against Rs 51.38 crore during the previous quarter ended September 2014.

With growing demand of HPL (High Pressure Laminates) globally, Stylam achieved revenue of Rs. 178 crores from exports in FY 14-15, which is 78.25% of its total revenue. This is expected to increase significantly as company plans to increase its exports to almost 100 countries in this fiscal year.

As company has doubled its capacity recently, we believe company will post decent growth sales and profits in coming quarters.

4. Peer Group Comparison: (as on 08 May'16)
On valuation parameters, we find Stylam Industries trading at significant discount compared to other listed players in the Industry. Moreover, important financials like OPM (operating profit margin) and ROE (return on equity) of Stylam are better compared to Greenlam Industries. Also once recent capacity expansion is completed, Stylam Industries Laminate capacity will be at par with Greenlam Industries
5. Key Concerns & Risks:

i) Competition from Unorganized Players – The domestic laminates industry is highly fragmented with majority of sector comprising unorganized players though there has been increasing shift in consumer preference from unbranded to branded goods. Competition from both organised as well as unorganised players leads to pricing pressure for the players, hence impacting margins of the company.

ii) Delay in GST Implementation – Implementation of GST will be a positive for Stylam as it would bring in a shift of consumers from the unorganised to organised space with a reduction in the price differential, going ahead. GST will address inefficiencies in the current tax system. However, any delay in implementation of GST could impact Stylam, as it would be difficult for company to gain market share in domestic market.

iii) Change in Consumer preference & trend – Currently, in the furniture industry, products like plywood, MDF, particle board and laminates are being widely used. However, going ahead, with a change in consumer preference or trend, substitutes like plastic or steel could evolve and pose a challenge to the plywood and laminate industry.

6. Saral Gyan Recommendation: (as on 08 May'16)

i) With recent expansion, Stylam production capacity will get almost doubled to 13 million sheets from existing capacity of 7 million (70 lakh) sheets per annum. As per management, the automated cutting edge technology implementation will boost the quality of products and increase efficiency with less human intervention. This will help company to extend its outreach in the Indian market with the aim of growing the domestic business along with exports as the total production will increase to match the demand on both fronts. The company currently exports to more than 80 countries and plans to expand its reach to 100 countries in this fiscal year

ii) Stylam is investing heavily on R&D to stay ahead on the innovation curve in the global Laminate Industry to develop with global markets. The company has showcases its products in major exhibitions in strategically important markets. Company is exporting its products in European and Southeast Asian countries. More than 80% of the products are being exported to more than 80 countries around the world, along with exports to 20 countries in Europe which is testimony to best in class quality products manufactured by the company. Moreover, Stylam enjoys strong reputation for its products with globally renowned quality credentials.

iii) Stylam continues to explore markets to understand product dynamics for exports and domestic business. The company has developed HPL exterior grade premium flooring product, under the brand name of ‘Walkon’. The company is the first to manufacture this product in India. Beside this, the company has enhanced production of Exterior Cladding which is marketed under the brand ‘Fascia’. Moreover, the interior grade laminates for premium and standard grades are marketed under brand name ‘Violam’ and ‘Wakalam’ respectively. Company is aiming for healthy growth which will be achieved through an appropriate mix of international and domestic business. The Company is also trying to add a new product segment in Laminates which will help to penetrate into newer markets

iv) In last 5 years, OPM increased from 5.37% to 10.96% and company managed to sustain OPM above 10% in 2015 which is good indication about operating efficiency of the company. Company also managed to bring Debt to Equity ratio below 2 from 2.38 in FY13. However with recent expansion, debt may be high on books for this fiscal but can be managed with strong cash flows from operations. Working Capital Days also reduced from 140 days to almost 100 days which is another positive.
v) Apart from Laminate business, Stylam has also set up a new building having built up areas of 2.23 Lacs square foot at Panchkula IT Park, Haryana. Company has planned to lease out the major portion of this built up areas to other players for commercial office space and for service sector business which will boost company’s revenue growth and profitability going forward.

vi) As of Mar’16, promoter’s shareholding in the company is at 58.83% out of which promoters have pledged 10 lakhs shares i.e. 23.23% of their holding since Dec 2011. In Public shareholding, 4.86% stake of Stylam is held by Mr. Manav Gupta, who is the son of Mr. Satish Gupta. Hence, promoters total in direct holding in the company is at 63.69%. Institution shareholding is negligible at 0.91%.

vii) In view of continuous expansion and investment strategies, company has not paid dividend to its shareholders during last 5 years. The last dividend paid by the company was in 2010, since then Stylam is retaining its profits to continuously increase its capacity. With significant expansion, the company has achieved revenue CAGR of 27.3% and profit CAGR of 25.2% during last 5 years.  As company has taken aggressive expansion by doubling its capacity with outlay of almost 45 crores recently, we expect company may continue retaining its profit in near future. 

viii) As per our estimates, Stylam Industries can deliver PAT of 13.75 crores for full financial year 2016-17, annualized EPS of Rs 18.80 with forward P/E ratio of 11.6X for FY16-17. Company’s valuation looks discounted compared to peer group companies on account of better financials. With completion of recent capacity expansion and increase in value added products, we believe company will continue to deliver strong revenue growth and profitability going forward.

ix) On equity of Rs. 7.32 crore, the estimated annualized EPS for FY 16-17 works out to Rs. 18.80 and the Book Value per share is Rs. 71.55. At current market price of Rs. 217.80, stock price to book value is 3.04.

Considering high earning visibility and attractive valuations of the company compared to other peer companies, growing demand of decorative laminates globally and company’s plan to extend its outreach to domestic market along with exports with recent capacity expansion, Saral Gyan team recommends “Buy” on Stylam Industries Ltd at current market price of Rs. 217.80 for target of Rs. 430 over a period of 12 to 24 months.

Buying Strategy:
  • 75% at current market price of 217.80
  • 25% at price range of 190-195 (in case of correction in stock price in near term)
Portfolio Allocation: 3% of your equity portfolio

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