HomeNewsBusinessBuy Greenlam Industries; target of Rs 670: Sharekhan

Buy Greenlam Industries; target of Rs 670: Sharekhan

Sharekhan is bullish on Greenlam Industries has recommended buy rating on the stock with a target price of Rs 670 in its research report dated May 29, 2024.

June 12, 2024 / 13:43 IST
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BUY
BUY

Sharekhan's research report on Greenlam Industries

For Q4FY2024, the company reported marginally higher consolidated revenues with higher than expected OPMs. Net earnings beat was further aided by lower other income and tax outgo. Company retained 20% consolidated revenue growth guidance for FY2025 while OPMs may remain flat to marginally higher. Particleboard unit is delayed by a quarter to Q3FY2025 with rated capacity rising to 886 cbm per day. However, capital outlay too sees upward revision by Rs. 100 crore to Rs. 875 crore.

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Outlook

We retain a Buy on Greenlam Industries Limited with a revised PT of Rs. 670, assigning a higher valuation multiple considering its strong earnings growth trajectory over FY2024-FY2026E.