Sharekhan's research report on Greenpanel Industries
Greenpanel reported an in-line consolidated revenues led by strong growth in domestic MDF segment. Operating margins lagged due to dip in export realisations and lower Plywood margins. The management targets domestic MDF volume growth of 12% y-o-y along with flat export volumes. MDF OPMs are expected to sustain while plywood would see an improvement from Q4FY2023. The company’s 231,000cbm brownfield MDF capacity expansion at Andhra Pradesh at a capex of Rs. 600 crore remain on track.
Outlook
We retain a Buy on Greenpanel Industries Limited (Greenpanel) with a revised PT of Rs. 505, lowering our valuation multiple to factor in near term EXIM pressure on MDF and OPM pressure on Plywood.
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