Accumulate Greenply Industries; target of Rs 319: Yes Securities

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26 Aug, 2025 12:21

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Yes Securities' research report on Greenply Industries

GIL outsources 30% of its plywood volumes. This has helped the company to focus on the premium category for own production. GIL enjoys a strong brand recall in the plywood business and company’s capacity expansion will be coming on-stream at the right time as its existing capacity is already running at full utilization. We expect Plywood to post Volume/Revenue CAGR of 9%/12% over FY17-20E led by midrange brand ‘Ecotec’ (Volume/Revenue CAGR of 18%/22% over FY17-20E).

Outlook

We expect company to post Revenue/EBITDA CAGR of 15%/17% over FY17-FY20E with revenue ramp-up coming in from 2HFY19 once new MDF capacity gets commissioned. We initiate coverage on GIL with ACCUMULATE rating and TP of INR 319 at 26x TTM FY19E EPS. We have assigned a lower multiple compared to CPL due to GIL’s growth challenges & margin profile.

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