Sharekhan's research report on Greenlam Industries
Greenlam’s acquisition of a laminate manufacturing unit in Gujarat has a revenue potential of Rs. 250 crore at peak utilisation, 8-9% OPM with RoCEs comparable to the existing business. The strategically-located unit opens up huge mass-market product segment dominated by unorganized players. Network leverage in semi-urban & rural areas, proximity to raw materials & ports are other key benefits. The company’s Rs. 950 crore capex plan for laminate, particleboard and plywood remains on track with peak net debt expected at a manageable level.
We retain a Buy on Greenlam Industries Limited (Greenlam) with an unchanged PT of Rs. 400, considering its strong growth outlook over FY2022-FY2024E.
At 17:30 Greenlam Industries was quoting at Rs 314.70, down Rs 15.80, or 4.78 percent.
It has touched an intraday high of Rs 330.50 and an intraday low of Rs 310.25.
It was trading with volumes of 2,701 shares, compared to its thirty day average of 69,529 shares, a decrease of -96.12 percent.
In the previous trading session, the share closed down 0.38 percent or Rs 1.25 at Rs 330.50.
The share touched its 52-week high Rs 415.90 and 52-week low Rs 242.20 on 19 April, 2022 and 30 June, 2021, respectively.
Currently, it is trading 24.33 percent below its 52-week high and 29.93 percent above its 52-week low.Market capitalisation stands at Rs 3,797.86 crore.
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