Hold Greenply Industries; target of Rs 300: ICICI Direct

ICICI Direct's research report on Greenply Industries

Plywood division revenues de-grew 3.9% YoY to Rs 306.4 crore of which 3.5% decline could be attributed to end of excise duty in Uttarakhand unit. Plywood volumes de-grew 1.9% YoY to 13.2 million square metre (MSM) while realisations fell 2.9% to Rs 231/ sq mt.

Outlook

This is expected to pick up post commissioning of the new MDF unit. With near term growth to remain under pressure, we continue to maintain our HOLD recommendation on the stock with a revised TP of Rs 300 (22x FY19E EPS).