Archive · 23 Sep 2026
ICICI Direct Gives Stylam Industries BUY, Sees 21% Upside
ICICI Direct, a brokerage, believes Stylam Industries could grow strongly.
It gave the company’s shares a BUY rating and set a target price of ₹4,000.
That is about 21% higher than the latest closing price mentioned in the article.
Stylam has started making products at a new factory called Manak Tabra.
The factory may add about ₹300 crore in revenue during FY27.
Over time, it could add ₹700-1,000 crore in yearly revenue.
The company also has no net debt and sells products in several global markets.
However, higher material costs, currency changes, global disruptions, and construction or operating problems could hurt its results.
ICICI Direct initiated coverage of Stylam Industries with a BUY rating and a ₹4,000 12-month target price.
The target implies approximately 21% upside from the last closing price of ₹3,314.
Stylam has begun commercial production at its 52.5 MSM Manak Tabra facility after investing about ₹334 crore.
The facility is expected to generate about ₹300 crore in FY27 revenue and ₹700-1,000 crore annually after a two-to-three-year ramp-up.
ICICI Direct cited raw-material inflation, geopolitical and foreign-exchange risks, supply-chain disruptions, and execution challenges as key risks.
- Who
- Stylam Industries and domestic brokerage ICICI Direct; Aica Kogyo is also mentioned as Stylam’s new promoter-group member.
- What
- ICICI Direct initiated coverage with a BUY rating and a ₹4,000 target price, citing Stylam’s expansion and export business.
- When
- ICICI Direct’s coverage has a 12-month target period; the Manak Tabra facility began commercial production in September 2026, while Aica Kogyo acquired its initial stake in February 2026.
- Where
- The expansion centers on Stylam’s Manak Tabra manufacturing facility, with expected demand from India, North America, Europe, and the Middle East.
- Why
- The brokerage expects the new facility, pricing actions, improving utilisation, exports, and potential Aica Kogyo synergies to drive growth.
Bullish Case
Risk Case
Capacity expansion
Bullish Case
The Manak Tabra facility is expected to support about ₹300 crore of FY27 revenue and ₹700-1,000 crore of incremental annual revenue after its ramp-up.
Risk Case
The facility is initially expected to operate at only 25-30% utilisation in FY27, and execution or ramp-up problems could delay benefits.
Profit growth
Bullish Case
ICICI Direct projects revenue, EBITDA, and profit growth through FY28, with EBITDA margins improving to an estimated 20%.
Risk Case
Initial underutilisation and raw-material costs may pressure margins before operating leverage improves.
Aica Kogyo partnership
Bullish Case
Aica Kogyo’s 40% holding could create opportunities in technology, product development, manufacturing expertise, and international markets.
Risk Case
The brokerage said potential synergies depend on future implementation and are not guaranteed.
- Brokerage call
- ICICI Direct initiated coverage with a BUY rating.
- Target price
- ₹4,000 over a 12-month period.
- Reference price
- ₹3,314 last closing price; implied upside of approximately 21%.
- New facility
- The Manak Tabra plant has 52.5 MSM capacity and began commercial production in September 2026.
- Expansion investment
- Approximately ₹334 crore, funded primarily through internal accruals.
- Revenue outlook
- ICICI Direct estimates revenue of ₹1,375.5 crore in FY27E and ₹1,608.7 crore in FY28E.
- Aica Kogyo holding
- Aica Kogyo’s total holding reached 40% after acquisitions totaling about ₹1,525 crore.