Stylam Industries Shares Jump 8% Following Govt’s Anti-Dumping Duty on Acrylic Solid Surfaces: What This Indicates for the Company

by | Mar 29, 2025 | 0 comments

Stylam Industries, a top Indian manufacturer of Acrylic Solid Surfaces, has witnessed a significant increase in its share price after the Indian government announced an anti-dumping duty on Chinese imports of Acrylic Solid Surfaces. The shares jumped 8% to Rs 1,801 per share on March 26. The price jump is indicative of the market’s favorable reaction to the new trade policy that could hugely favor Stylam Industries.

In this blog, we will try to go further in depth into why this surge is happening, the effect of the anti-dumping duty, and the future for Stylam Industries as it keeps expanding in a competitive market.

Background: What Are Acrylic Solid Surfaces?

Now that we have established how good the news was for Stylam Industries, let’s briefly see what exactly Acrylic Solid Surfaces are. These surfaces are premium, multipurpose materials found in a host of applications ranging from countertops to signage and furniture. Acrylic Solid Surfaces are long-lasting, low maintenance, and are able to be welded together perfectly, making them a popular solution for residential, commercial, and industrial use. They are widely applied to countertops, shower walls, building exterior cladding, signage, and furniture.

The product is also easy to cut, rout, and sand, similar to wood, and this gives it a great level of versatility. With this ease of use and high level of adaptability, Acrylic Solid Surfaces have become very popular across different industries and Stylam Industries has become one of the dominant players in the production of the product in India.

Stylam Industries: A Market Leader in Surface Solutions

Stylam Industries, an Indian company, produces several surface solutions such as High-Pressure Laminates (HPL), Compact Laminates, Specialty Laminates, and naturally, Acrylic Solid Surfaces. The firm is among the largest Indian producers of Acrylic Solid Surfaces, with a production share of around 70-80% of India’s total production.

Established in 1991, Stylam Industries has earned a renowned reputation for offering quality products. With customer satisfaction and innovation in focus, the company has diversified its product range and upgraded its manufacturing capacities. Stylam’s emphasis on quality has resulted in it becoming a market leader in India’s laminate and solid surface industry.

Besides its local presence, Stylam Industries also serves global markets by exporting its products to more than 60 countries. This expansion is a reflection of the company’s competitiveness on the global market and its firm market position.

The Government’s Decision: Anti-Dumping Duty on Acrylic Solid Surfaces

The Indian government’s move to impose an anti-dumping duty on Chinese imports of Acrylic Solid Surfaces is likely to have a long-lasting effect on Stylam Industries and the Indian market in general. This responsibility, which will be effective for a span of five years, is designed to guard Indian manufacturers from cheap imports, mainly from China, where manufacturers have been accused of selling Acrylic Solid Surfaces below their cost of production, an activity called “dumping.”

The move by the government follows a petition by Stylam Industries and other players in the industry calling for such a step. In its petition, the company cited that the dumping practice not only threatened Indian producers directly with extinction but also skewed the market to make it more difficult for local players to compete on an even level.

Impact on Stylam Industries

The imposition of the anti-dumping duty has been viewed as a major triumph for Stylam Industries and other Indian manufacturers in the industry. Given that Stylam already is the largest manufacturer of Acrylic Solid Surfaces in India, the action sets the company up to gain even greater market share as it becomes increasingly difficult for foreign imports to compete at the same price.

  • Protection against Unfair Competition: The anti-dumping duty makes the playing field more even for Stylam Industries, safeguarding it against the adverse impacts of unfairly priced imports. Without it, the market might have continued to be dominated by foreign players with artificially low prices, which would have compressed Stylam’s margins and market share.
  • More Demand for Locally Made Products: Since the duty has been imposed, the price of imported Chinese Acrylic Solid Surfaces will go up, which will make products made domestically more appealing. Stylam Industries will be at an advantage due to this demand shift since buyers will have more preference for products made domestically, which are now priced competitively compared to their imported counterparts.
  • Long-term Growth Opportunities: With the lower competition posed by cheap imports, Stylam Industries will be able to concentrate on strengthening its market base and expanding its capacity. As a leading manufacturer of Acrylic Solid Surfaces, Stylam is positioned to take a larger share of the domestic market.
  • Positive on Stock Price: Since the market is expecting Stylam Industries to gain from the anti-dumping duty, the company stock has been favored in the positive direction. The 8% appreciation in share price indicates investor confidence in the company’s future prospects, given the potential for higher demand and better profit margins.

Analysts’ View: Stylam Industries Gets ‘Buy’ Rating

Stylam Industries has been in the limelight of both market analysts and investors in recent times. The firm has recently witnessed an upward revision in its stock outlook, with Anand Rathi analysts upgrading its stock to a “buy” rating. They have placed a 12-month target price of Rs 2,582 per share, which is a potential upside of more than 40% from its current trading level.

The analysts are of the view that the growth path of Stylam Industries is healthy, with revenue and earnings likely to increase at a compound annual growth rate (CAGR) of 19% and 20%, respectively, in the next few years (FY24-27). The strong product portfolio of the company, its market position, and the positive effect of the anti-dumping duty all point towards a positive long-term outlook.

Even though stock prices have decreased over the last three months, analysts opine that Stylam Industries provides a good risk-reward opportunity, with plenty of upside in the next few quarters. Those investors who are able to take advantage of the drop in the stock price might experience good returns as the company enjoys the duty and further consolidates its market position.

Also read: Suzlon Energy: Riding India’s Wind Boom, A Strong Future Beckons

Future Outlook for Stylam Industries

Looking forward, Stylam Industries is poised to benefit from a number of long-term trends in the industry. The diversified product mix, robust manufacturing capability, and market leadership in the Indian market by Stylam Industries form a sound foundation for growth in the future. Following are some forces that can change the destiny of Stylam Industries:

  • Increasing Demand for Environmentally Friendly Products: As more and more demand for eco-friendly and sustainable products increases, Stylam Industries is perfectly positioned to reap the benefits of the trend. Acrylic Solid Surfaces tend to be considered eco-friendly products because they are tough and can easily be cleaned. With an increase in companies and consumers looking for sustainable options, Stylam’s products are bound to catch on.
  • Expansion into New Markets: Stylam Industries is well established in global markets, with exports to more than 60 countries. With further expansion into new markets, the company can leverage the increasing global demand for surface solutions. This expansion will not only increase revenues but also enhance the company’s brand image globally.
  • R&D and innovation: Stylam Industries also emphasizes research and development (R&D) and innovation. Since the company continues to invest in new products and technology, it is able to stay competitive in the market. Through innovation-driven growth, Stylam will be able to anticipate future trends and respond to changing customer needs.
  • Solid Industry Drivers: The Indian economy will likely sustain its growth path, driven by infrastructure creation, urbanization, and industrialization, generating demand for good-quality materials such as those supplied by Stylam Industries. With the expanding economy of the country comes a corresponding need for robust, durable, and aesthetically pleasing surface solutions.

Stylam Industries stands to gain from the Indian government’s introduction of an anti-dumping duty on Chinese imports of Acrylic Solid Surfaces. Such a policy change provides a more conducive setting for the company, as it assists in safeguarding the market share and profitability of Stylam in the event of unequal competition. Enjoying robust growth opportunities, a growing product portfolio, and a sound base in the domestic and global markets, Stylam Industries seems well set up for sustained success.

As the company capitalizes on this opportunity, investors can still be optimistic about the future performance of the stock. With an optimistic outlook and potential for substantial upside, Stylam Industries is a good investment opportunity for investors who wish to profit from the expansion of India’s manufacturing and construction industries.

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