Buy Greenpanel Industries; target of Rs 326: Anand Rathi

Anand Rathi's research report on Greenpanel Industries

Greenpanel Industries’ revenue surged 17.5% y/y to ~Rs3.9bn in Q2 FY26, led by strong MDF performance despite soft performance on Plywood. Gross profit rose 16% y/y to Rs1.9bn, while EBITDA fell 17% y/y, led by higher employee cost/other operating expenses. Higher depreciation/finance cost led to Rs61m net loss (vs. Rs185m profit in Q2 FY25). Management expects high-teen domestic MDF volume growth and operating margin (excluding one-offs and forex losses) at highsingle to low double-digit for FY26. We expect revenue/earnings to cock 16/46% CAGR over FY25-28, aided by ramp-up of MDF plant, inputcost tailwinds and economies of scale.

Outlook

We maintain BUY rating on the stock with a TP of Rs326 (from Rs377 earlier), valuing it 22.5x FY27e/FY28e average EPS.