Sharekhan's research report on Greenlam Industries
For Q2FY2023, Consolidated revenues beat estimates led by strong realization growth in laminates while OPM lagged on account of continued raw material cost pressures. The company reduced its net debt to Rs. 75.5 crore led by Rs. 195 crore preferential issue. The working capital gets reduced by 8 days to 69 days. The company’s Rs. 1000-crore capex plans for laminates, particleboard, and plywood businesses remain on track.
We retain Buy on Greenlam Industries Limited (Greenlam) with an unchanged PT of Rs. 420, considering its strong growth outlook over FY2022-FY2025E.