Sharekhan's research report on Greenlam Industries
The company reported better than expected revenues but was affected by increased raw material costs due to its inability to pass on cost to international clients that led to lower than expected net earnings. Its 1.5 million laminate capacity is expected to be onstream by Q3FY2023 which along with expansion in product adjacencies would provide next leg of growth. Dominant industry position, strong domestic growth outlook, demand shift from unorganised to organised players and rising export opportunities to lead to healthy earnings growth over FY2021-FY2024E.
Outlook
We retain Buy on Greenlam Industries Limited (Greenlam) with a revised PT of Rs. 1,605, considering its healthy earnings growth outlook over FY2021-FY2024E.
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