At a Glance
Styrenix has quietly become a high-margin, dividend-yielding smallcap gem in the specialty chemicals universe. With 30% ROCE, 12% OPM, and an ambitious Thailand acquisition, it’s looking to compound earnings – even if promoter holding just pulled a 16% Houdini.
1. 🏭 WTF Do They Even Do?
- Founded in 1973, Styrenix makes:
- ABS (Absolac): Acrylonitrile Butadiene Styrene → used in autos, appliances, toys
- SAN (Absolan): Styrene-Acrylonitrile resin → used in lighting, novelties, packaging
- Polystyrene: Cheap plastic cousin used in packaging, cups, components
🧪 Essentially, it’s in everything plastic but not polyester. Think: LG fridge parts, Bajaj fan covers, and that pen you just chewed.
- Recently acquired INEOS Styrolution Thailand, making it a full-blown Asia-Pacific ABS exporter
2. 💸 Financials – Profit, Margins, ROE, Growth
| Metric | FY20 | FY24 | FY25 |
|---|---|---|---|
| Revenue (Cr) | — | ₹2,222 | ₹2,982 |
| Net Profit (Cr) | — | ₹173 | ₹235 |
| OPM (%) | — | 12% | 12% |
| ROE (%) | — | 24% | 25% |
| ROCE (%) | — | 27% | 29% |
| EPS | — | ₹98.47 | ₹133.72 |
| 3Y Profit CAGR | — | — | 36% |
| 1Y Price Return | — | — | +34% |
📈 Everything is compounding beautifully
📉 But recent promoter exits could signal “top-out” fears
3. 💰 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹3,134
- P/E: 23.4x
- P/B: 4.7x
- Dividend Yield: 3.13%
- Mcap: ₹5,512 Cr
- EPS (FY25): ₹133.72
🧠 EduInvesting FV Range:
csharpCopyEditBase Case (16x EPS) = ₹2,140
Reasonable (20x EPS) = ₹2,675
Peak Plastic Euphoria (25x EPS) = ₹3,340
🎯 FV Range: ₹2,140 – ₹3,340
It’s fairly priced at current levels, especially with global capacity coming online.
4. 🔥 What’s Cooking – News, Triggers, Drama
- 🏭 Acquired 100% of INEOS Thailand – regional expansion to ASEAN
- ✅ Got shareholder approval for merger of Styrenix Thailand subsidiary
- 💸 Issued ₹220 Cr corporate guarantee to fund the acquisition
- 🧮 Booked ₹56 Cr PAT in Q4FY25 despite 9% margin squeeze
- 📦 Contract for brownfield ABS capacity expansion already underway
- 🌱 Also acquired 36% in Clean Max Jasper (solar energy company) – ESG boost?
📌 The whole business is going regional, and margins could benefit from scale.
5. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| FY25 | ₹ Cr |
|---|---|
| Net Worth | ₹1,168 Cr |
| Borrowings | ₹193 Cr |
| D/E Ratio | ~0.17 ✅ |
| CWIP | ₹29 Cr (post-expansion readiness) |
| Total Assets | ₹2,291 Cr |
🧮 Still lean, even after a foreign acquisition
💣 But watch out: overseas expansions = FX, culture, ops risks
6. 💵 Cash Flow – Sab Number Game Hai
| FY25 Cash Flow | ₹ Cr |
|---|---|
| Operating CF | ₹54 ✅ |
| Investing CF | ₹-85 (INEOS + CWIP) ❌ |
| Financing CF | ₹+74 (funding + guarantee issue) |
| Net CF | ₹+43 ✅ |
🧯 Cash generation dipped in FY25 but still positive, despite big ticket M&A
📌 Needs sustained cash generation to fund future expansions
7. 📊 Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 29.4% ✅ |
| ROE | 24.9% ✅ |
| OPM | 12% ✅ |
| Inventory Days | 126 ❌ |
| Payable Days | 99 ✅ |
| CCC | 81 days 😐 |
| Working Cap Days | 76 |
🎯 Operationally lean but not lightning fast. They’re not Amul, but not Future Retail either.
8. 📈 P&L Breakdown – Show Me the Money
- FY25 Revenue: ₹2,982 Cr
- EBITDA: ₹350 Cr
- PAT: ₹235 Cr
- EPS: ₹133.72
- Dividend Payout: 0% 🤐
- But past history of ~35% payout before FY24
📌 Dividend suspension possibly due to capex + Thai acquisition
📌 Could resume once FY26 cash flows stabilize
9. 📐 Peer Comparison – Who Else in the Game?
| Company | Rev (Cr) | OPM | ROCE | P/E | Mcap (Cr) |
|---|---|---|---|---|---|
| Pidilite | ₹13,140 | 22.9% | 29.9% | 74x | ₹1.55L Cr |
| Deepak Nitrite | ₹8,281 | 13.2% | 16.6% | 39x | ₹27K Cr |
| Navin Fluorine | ₹2,349 | 22.7% | 11.7% | 86x | ₹24.8K Cr |
| Atul Ltd | ₹5,583 | 16.4% | 12.8% | 45x | ₹22K Cr |
| Styrenix | ₹2,982 | 11.8% | 29.4% | 23.4x | ₹5.5K Cr |
🎯 Best ROCE, lowest valuation — hidden gem in the pack?
But… much smaller scale than giants like Deepak or Pidilite
10. 📎 Misc – Shareholding, Promoters, Institutions
| Stakeholder | Sep ’23 | Mar ’25 |
|---|---|---|
| Promoter | 62.7% | 46.2% ❌ |
| FIIs | 2.5% | 2.5% |
| DIIs | 5.0% | 12.5% ✅ |
| Public | 29.7% | 38.8% |
🔻 Promoter holding fell ~16% in 3 quarters
🧠 Possibly related to the INEOS exit from India biz
✅ DII confidence rising — possibly buying the promoter stake off-market
11. 🎭 EduInvesting Verdict™
Styrenix is not sexy like Deepak Nitrite, and doesn’t have “China+1” narrative.
But it is quietly compounding – with 12% OPM, 30% ROCE, and a foreign business bolt-on.
✅ Clean balance sheet
✅ Reasonable valuation
✅ Global expansion done
❌ Promoter exit risk
❌ Execution on Thai operations is the real test now
🎯 EduInvesting FV Range: ₹2,140 – ₹3,340
At ₹3,134, it’s fairly priced — maybe slightly ahead, but not irrational.
Tags: Styrenix Performance, ABS Plastic Stocks, Specialty Chemicals India, INEOS Exit, Styrenix Thailand Acquisition, Styrenix ROCE, EduInvesting, Midcap Plastic, Engineering Thermoplastics
✍️ Written by Prashant | 📅 11 July 2025
