Anand Rathi's research report on Greenply Industries
Greenply’s Q3 revenue/gross profit/EBITDA grew 5.6/5.8/7.2% y/y to Rs6.2bn/2.5bn/540m. Adj. PAT was up 26.5% y/y to Rs244m. Despite higher revenue, input cost pressures restricted the gross margin to 40.1%. The EBITDA margin improved only 13bps y/y to 8.8%. Management expects a strong Q4, driven by a bounce-back in plywood/MDF capacity available for the full quarter, and 10%/16% operating margins.
Outlook
We believe at current levels the risk-reward is favourable; hence, we upgrade the stock to a Buy with a higher 12-mth TP of Rs408, 22.5x FY27e earnings (earlier Rs375, 20x FY27e earnings).
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