Shares of Greenply Industries zoomed 11 percent in two days to Rs 182 after the company reported robust July-September quarter (Q2FY24) results led by strong volume growth in plywood segment and significant ramp-up in MDF volumes.
The stock of this smallcap plywood manufacturer soared 24 percent so far this year as against 6 percent rise in the benchmark Sensex. Greenply shares traded near their 52-week high level of Rs 185 each touched on June 27, 2023.
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Greenply’s consolidated revenue grew 23 percent on-year in Q2FY24 driven by a ply volume growth of 12 percent year-on-year (YoY). The management continues to remain optimistic and has guided for 8 percent volume growth for FY24.
The company’s newly commenced MDF segment (operated only 55 days in Q1FY24) reported revenue of Rs 8,970 crore in September-ended quarter.
Gross profit, on the other hand, climbed 24 percent YoY to Rs 242 crore in Q2FY24 as compared to Rs 195 crore in the year-ago period.
Analysts at JM Financial shared a ‘buy’ call for Greenply, arriving at a target price of Rs 300 per share. “We broadly maintain our FY24-26 EPS estimates to reflect the current quarter performance, building in the company’s price-to-earnings (PE) ratio over FY24-26 at 47.1 times (x)/10.9x,” the brokerage firm added.
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Greenply Industries is engaged in the manufacturing of plywood. The compnay’s product range includes ply boards, laminates, decorative veneers, particle boards and prelam particle boards/MDF. The company is also in the business activities of plywood and allied products, medium density fibre-board and a llied products.
In the September-ended quarter, promoters, mutual funds, and foreign investors have trimmed their stake in the company.
Promoters have decreased their holdings to 52.12 percent in the September-ended quarter from 52.14 percent in the previous quarter.
Mutual Funds, too, have cut stake to 32.2 percent in September 2023 from 32.21 percent in June 2023. Joining the trend, foreign investors have trimmed holdings to 2.07 percent in September 2023 from 2.15 percent in June 2023.
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