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Stylam Industries begins commercial production at Manak Tabra facility
ICICI Direct started coverage with a ₹4,000 target and said the ₹334 crore Manak Tabra plant should generate about ₹300 crore revenue in FY27 as capacity utilization ramps.
Stylam Industries has begun commercial production at its Manak Tabra facility, a new manufacturing site tied to the company’s next phase of capacity expansion, LiveMint Markets reported.
ICICI Direct initiated coverage of Stylam Industries with a BUY rating and a 12-month target price of ₹4,000, implying about 21% upside from the stock’s last closing price of ₹3,314. The brokerage valued the company at 31x FY28E EPS and highlighted pricing actions and improving capacity utilisation as supports for growth.
The ramp-up is anchored by the commissioning of a 52.5 MSM Manak Tabra manufacturing facility, which the company invested about ₹334 crore in. Stylam expects initial capacity utilisation of 25% to 30% in FY27 and projects the plant will contribute around ₹300 crore in revenue during the year.
As utilisation rises, management expects the facility to generate incremental annual revenue of ₹700 crore to ₹1,000 crore over a two to three year ramp-up period. ICICI Direct also pointed to capacity expansion supporting demand in North America, Europe, and the Middle East, alongside premium surface demand in India.