After registering a decent revenue growth of 18.6% year-on-year in the December 2024 quarter (aided by higher volumes and better realisations), the laminate sector player is expected to report good sales growth in the March 2025 quarter supported by a healthy order pipeline. While it faced margin pressures due to higher raw material costs, the management expects stability in such costs in the upcoming quarters.
The demand for laminates is expected to pick up in 2025-26 aided by export opportunities and strong domestic real estate sales. The company offers a diverse product portfolio (laminates, acrylic surfaces and cladding solutions) and operates with over 6,000 dealers in the domestic market. It exports to over 80 countries, with exports accounting for two-thirds of its revenue.
It is a beneficiary of the growing domestic and global laminates market and resilient prospects of acrylic surfaces. Urbanisation, rising income levels, a buoyant real estate sector and rising demand for furniture are the key drivers of the laminates market. Moreover, properties like durability, resistance to scratches and applications in walls and flooring make laminates an attractive choice for renovation and interior activities. The acrylic surfaces market is seeing increased demand due to its nonporous and easy-to-clean features and growing preference for aesthetically pleasing materials in construction projects.
The management has taken various steps to maintain its growth momentum. In the domestic market, it is focusing on brand building, customer satisfaction, digital marketing and improving market penetration through expansion of its dealer network. It is also expanding into newer export regions and strengthening relationships with existing partners.
Furthermore, focus on innovative and value-added products, cost optimisation efforts, investments in technological improvements, stringent quality control measures and emphasis on manufacturing efficiency are some of the initiatives expected to create long-term value for the stakeholders. It is also incurring a capex of Rs.250 crore to expand its manufacturing capacity by adding a laminate plant in Panchkula. The plant will lead to a significant revenue potential after commissioning (expected in June 2025). Moreover, the company enjoys a zero-debt status reflecting strong financial health and prudent capital management.Analysts expect the company’s export business to register strong growth with the improvement in the global macro environment. An HDFC Securities report says that India’s laminate exports will remain healthy aided by cost competitiveness. The stock has outperformed the market benchmark in the last one year with 6.5% returns compared to BSE Sensex with 0.5% returns.Selection methodology: We pick the stock that has shown the maximum increase in ‘consensus analyst rating’ during the past three months. The consensus rating is arrived at by averaging all analyst recommendations after attributing weights to each of them (1 for strong buy, 2 for buy, 3 for hold, 4 for sell, 5 for strong sell). An improvement in consensus analyst rating indicates that the analysts are getting bullish on the stock. Only stocks with more than five analysts covering them are considered. You can see similar consensus analyst rating changes during the past week in ETW 50 table.
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