Greenply Industries Ltd. share price target

Strong volume growth in plywood division in FY19 Plywood business revenues grew 26.7% YoY to | 380.8 crore driven by 23.9% volume growth at 17.2 million sq mt (MSM) while average realisation grew 1.4% YoY to | 220 /sq meter in Q4FY19. Despite plywood industry growing <5% YoY, GIL's plywood sales grew 19.6% YoY to | 1,372 crore in FY19. This was primarily on account of strong sales volume growth of 19.5% YoY to 61.0 MSM in FY19. Higher sales volume was as GIL got incremental market share on account of gain in market share due to stricter...

An inverted yield curve is indicating a slowing global economy. US Fed's dovish stance of no rate increase in CY19 led to decline in yields across the world. Equity markets also fell as growth slows. In the above backdrop, Indian yields were flat but INR appreciated as FPI inflows have continued. Indian equity markets also rose. Markets now await RBI policy on 4 April 2019. Given the extent of growth slowdown since the last policy and continued undershooting of...

Robust growth, better ROCE guided for plywood business We recently hosted Rajesh Mittal, JMD of Greenply Industries (GIL), who has been running the company's plywood division since inception and will continue...

ICICI Securities Ltd | Retail Equity Research Greenply Industries' (GIL) topline grew 15.9% YoY to | 462.9 crore on account of strong growth in plywood business EBITDA margins contracted sharply by 300 bps YoY to 12.6% on account of weak realisation in the MDF segment...

ICICI Securities Ltd | Retail Equity Research We attended the analyst meet of Greenply Industries (GIL). The key takeaways are: -i) MDF industry currently operates at 50% capacity utilisation, ii) the management has guided for ~60% blended utilisation for its MDF business while Andhra MDF plant is expected to reach breakeven at PBT level in FY20E, iii) on the plywood business, GIL will increase the proportion of outsourcing to 30% in the next three years and iv) the management has guided for | 1500-1600 crore revenues and 11.5% EBITDA margin for plywood business post de-merger. We maintain our...

ICICI Securities Ltd | Retail Equity Research Greenply Industries' (GIL) topline remained flattish YoY at | 448.3 crore on account of weak performance of the MDF division EBITDA margins contracted sharply by 500 bps YoY to 9.3% (our expectation: 12.6%) mainly on account of contraction in MDF division EBITDA margins (4.7% in Q2FY19 vs. 26.0% in Q2FY18) PAT significantly de-grew 60.8% to | 14.2 crore (our expectation: | 22.9 crore) due to sharp EBITDA margin contraction and high...

CPI inflation plunged to 13-month low of 3.3% in Oct'18 led by decline in food inflation to (-) 0.9% in Oct'18 from 0.5% in Sep'18. On the other hand, core inflation went up to 6.3% in Oct'18 from 5.9% in Sep'18. Healthcare, household and personal goods along with higher prices of petroleum products drove the increase in core. With benign food prices and recent decline in international oil prices, CPI inflation is likely to remain below 4% in H2FY19. Hence, RBI is also likely to remain on hold....

ICICI Securities Ltd | Retail Equity Research Greenply Industries' (GIL) topline grew 3.7% YoY to | 404.9 crore (our estimate: | 406.7 crore) led by the weak performance of the MDF division. MDF division revenues de-grew 30.1% YoY to | 91.1 crore (our estimate: | 116.7 crore) EBITDA margins contracted 113 bps YoY to 11.3% (our estimate: 14.0%) mainly on account of contraction in MDF division EBITDA margins by 240 bps YoY to 22.1%...

Greenply Industries Ltd ( GIL ) is an interior infrastructure company with a strong retail network of 48 branches across 300 cities in 21 states. The Company has over 12,000 dealers/ sub dealers/ distributors/ retailers. GIL accounts for 26% of the total organized plywood market in India and 30% market share in domestic Medium Density Fibreboard ( MDF )market. Company produces residential and commercial floor products like plywood and block boards, MDF and wood floors, veneers etc. It has currently 5 manufacturing plants in India, Gujarat, Andhra Pradesh, Uttar...

Net sales for FY18, grew by 0.7% to `1673crs. Plywood segment reported sales de-growth of 1.7% at `1147.94 crs. This was on the back of lower realisations (3.1%) (i.e. adverse mix); while volumes recorded a growth of 1.6%. MDF segment recorded sales de-growth of 1.1% at `471.7 crs. with volumes under pressure this year as competition took steep prices cuts and Greenply stood the on prices. Gross margin reduced by 30 bps to 46.5%. EBIDTA margin for FY18 stood at 14.7%.for...