Moneycontrol
Last Updated : Jul 11, 2012 03:12 PM IST | Source: Moneycontrol.com

Buy Greenply Industries; tgt of Rs 224: Firstcall Research

Firstcall Research is bullish on Greenply Industries and has recommended buy rating on the stock with a target of Rs 224 in its July 9, 2012 research report.

 
 
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Firstcall Research is bullish on Greenply Industries and has recommended buy rating on the stock with a target of Rs 224 in its July 9, 2012 research report.


“Greenply Industries Limited (GIL) is India’s largest interior infrastructure company with a whopping turnover of Rs. 1420 crore. The company stands at top when it comes to plywood, decorative veneers and particle boards. The company account for almost 25 percent of the organized plywood and 15 percent of the organized laminate market in India. Greenply Industries Ltd is a leader in the manufacturing and marketing of a wide range of interior infrastructure products. The company expertise in supplying highquality products, provide both surface finish and foundation/structural products for homes, offices and retail establishments. Greenply markets the most comprehensive portfolio of residential and commercial floor products available - plywood & block boards, decorative laminates, decorative veneers, and MDF under the brand names of Greenply Plywood, Green Club Premium Ply, Greenlam Laminates, Green Decowood and Ecotec.”


“With a strong retail network, 32 branches across India, and presence in over 300 cities, Greenply Industries Limited is committed to provide international quality products to its customers. The company has six state of the art manufacturing facilities across the country manufacturing products of global standards. Greenlam, the flagship decorative laminate brand from Greenply is exported to more than 65 countries including Thailand, Indonesia, Taiwan, Canada, Bahrain, Hong Kong, Malaysia, Singapore, Kenya, Dubai, Russia, USA, Australia, Mexico, Saudi Arabia, China and Europe. The consistency-testifying certifications of the Company comprise ISO 9001 (quality management), ISO 14001 (environment system), ISO 18001 (health and safety) and SA 8000 (socially accountable practices).”


“Greenply Industries Ltd has reported net profit of Rs 162.62 million for the quarter ended on March 31, 2012 as against Rs 59.23 million in the same quarter last year, an increase of 174.56%. It has reported net sales of Rs 4587.21 million for the quarter ended on March 31, 2012 as against Rs 3495.66 million in the same quarter last year, a rise of 31.23%. Total income grew by 32.92% to Rs 4646.27 million from Rs.3495.66 million in the same quarter last year. During the quarter, it reported earnings of Rs 6.74 a share.”


“At the current market price of Rs 198, the stock is trading at 6.35 x FY13E and 5.06 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.31.16 and Rs.39.14 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 22% and 56% over 2011to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 2.23 x for FY13E and 1.94 x for FY14E. Price to Book Value of the stock is expected to be at 1.07 x and 0.88 x respectively for FY13E and FY14E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 224 for medium to long term investment,” says Firstcall Research report. 


Shares held by Mutual Funds/UTI


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To read the full report click on the attachment

First Published on Jul 11, 2012 03:05 pm
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