Anand Rathi's research report on Greenply Industries
Broadly in line with our estimated Rs4.2bn/Rs310m, Greenply’s Q3 revenue/PAT grew 24%/19% y/y to Rs4.2bn/Rs298m. Its gross/ EBITDA margins were 334bps/208bps lower y/y to 38.7%/10.2% (ARe 40%/11.3%). Its revenue growth visibility improved, led by the standalone entity (volume/realisations up 11.4%/7.3% y/y), and the overseas subsidiary’s revenue up 58.4% y/y. Margins were slashed by cost pressures, though, largely higher raw-material cost (standalone) and other expenses (subsidiary).
Outlook
With the increased capacity to go live in FY23/FY24 and the overall outlook encouraging, we upgrade the stock to a Buy with a higher TP of Rs257, 20x FY24e earnings (earlier Rs227, 20x FY23e earnings).
More Info
At 13:32 hrs Greenply Industries was quoting at Rs 183.75, up Rs 3.10, or 1.72 percent.
It has touched an intraday high of Rs 189.95 and an intraday low of Rs 179.95.
It was trading with volumes of 8,909 shares, compared to its thirty day average of 21,665 shares, a decrease of -58.88 percent.
In the previous trading session, the share closed down 3.29 percent or Rs 6.15 at Rs 180.65.
The share touched its 52-week high Rs 254.25 and 52-week low Rs 156.55 on 08 November, 2021 and 19 March, 2021, respectively.
Currently, it is trading 27.73 percent below its 52-week high and 17.37 percent above its 52-week low.
Market capitalisation stands at Rs 2,253.28 crore.
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