Greenply Industries Ltd. share price target

Asset light outsourcing model for plywood has worked well for GIL: GIL outsources ~30% of its plywood volumes. This has helped the company to focus on the premium category for own production. GIL enjoys a strong brand recall in the plywood business and company's capacity expansion will be coming on-stream at the right time as its existing capacity is already running at full utilization. We expect Plywood to post Volume/Revenue CAGR of 9%/12% over FY17-20E led by midrange brand Ecotec' (Volume/Revenue CAGR of 18%/22% over FY17-20E). Mega capex in progress; expect earning boost post FY19: GIL currently has a 30% market share mainly in the organized Indian MDF market which in turn is worth...

EBITDA de-grew by 21.5% Y-O-Y to `48.7crs in Q1FY18. EBITDA margins contracted by ~240bps Y-O-Y to 12.5%. Margin contraction was primarily due to decrease in plywood volumes and currency loss of `8.58 crs on foreign currency borrowings for new MDF plant. However, Gross margins expanded by ~230bps on account of better capacity utilisations and a 4% improvement in MDF domestic realisation. EBIDTA margins in the Plywood...

ICICI Securities Ltd | Retail Equity Research Greenply Industries' (GIL) topline declined 5.9% YoY to | 390.3 crore (our estimate: | 418.1 crore) due to the poor performance of the plywood division whose revenues de-grew 13.6% YoY to | 253.4 crore (our estimate: | 285.8 crore) due to volume decline of 11.6% Plywood & allied division volumes de-grew 11.6% to 11.1 mn square metre (MSM) (our estimate: 12.2 MSM) while MDF division volumes grew 8.9% to 49883 CBM (our estimate: 49852 CBM)...

Net sales for Q4FY17 was flat at `446.6crs. Growth was impacted mainly due to lower realisation in both the segments. Plywood sales reported a de- growth of 3.9% (on a net basis). Volume de-growth in the plywood segment was at 1.9% in Q4. MDF sales increased by 8.4% to `138 crs in Q4FY17. MDF segment reported volume growth of 12.7%. Wallpapers contributed ~`2.5 crs to topline in Q4. EBITDA grew by 10.2% Y-O-Y to `72.7crs in Q4FY17. EBITDA margins expanded by ~160 bps Y-O-Y to 16.1%. Margin expansion was primarily due to increase in contribution of MDF to the total mix. Gross margins expanded by ~470 bps on account of improvement in...

ICICI Securities Ltd | Retail Equity Research Greenply Industries' (GIL) topline remained flat YoY (down 0.3%) at | 446.6 crore. However, it was above our estimate of | 407.2 crore on account of the strong performance of MDF division. MDF revenues grew 8.3% YoY to | 137.7 crore (our expectation: | 110.4 crore) EBITDA margins expanded 155 bps YoY to 16.0%. It was above our expectation of 14.9% mainly on account of strong performance in the...

Greenply Industries reported a dismal Q3FY17 result as plywood and MDF sales volume declined, impacted by demonetisation. The company reported 11.2%, 24.9% and 34% de-growth in sales, EBITDA and PAT over Q3FY16 respectively.

Net sales de-grew by 14% Y-O-Y to `358.8crs in Q3FY17.Growth was impacted due to demonetisation measures. Plywood sales reported a de- growth of 9.1% (on a net basis). Volume de-growth in the plywood segment was at 6.8% in Q3. MDF sales declined by25.6% to `95.85crs in Q3FY17. MDF segment reported volume de-growth of 22.9%. Wallpapers contributed ~`2.68crs to topline in Q3. EBITDA declined by ~25% Y-O-Y to `48.5crs in Q3FY17. EBITDA margins contracted by ~133bps Y-O-Y to 14.3%. Margin contraction was a trickle-down impact of de-growth of topline and higher ad expenditure to sales, whichwas at 3.1% in Q3FY17 compared to...

ICICI Securities Ltd | Retail Equity Research Greenply Industries' (GIL) topline de-grew 14.9% YoY to | 358.8 crore in line with our estimate of | 364.4 crore. The revenue decline can be attributed to 10.5% YoY de-growth in revenues of the plywood & allied division to | 260.3 crore (vs. our estimate of | 266.8 crore). MDF revenues de-grew significantly by 25.6% YoY to | 95.9 crore (vs. our estimate of | 94.6 crore) The EBITDA margins contracted 203 bps YoY to 13.3%. However, it...

Net sales grew by 8.5% Y-O-Y to `434.6crs in Q2FY17. FY17. Plywood sales reported growth of 7% (on a net basis) driven by healthy volume growth of 8.4%. MDF sales grew by 9.5% to `123.61crs in Q2FY17.. Growth in MDF was drive by exports. MDF segment...

ICICI Securities Ltd | Retail Equity Research Greenply Industries' (GIL) topline grew 8.4% YoY to | 434.6 crore (our estimate: | 430.7 crore) led by 7.0% YoY growth in revenues of plywood division to | 308.0 crore (our estimate: | 302.8 crore) The EBITDA margin expanded 60 bps YoY to 14.8%. However, it was below our expectation of 15.5% due to lower-than-expected EBIT margin in the MDF division at 24.3% (vs. our expectation of 27.0%) Net profit grew 33.0% YoY to | 35.1 crore and was marginally below...