Greenply Industries Ltd. share price target

We outline key highlights from our interaction with the management of Greenply Industries (GIL).

Plywood sales volumes declined 27.2% YoY at 11.1 million sq.mt. (MSM) in Q1FY21 (45.1% in H1 at 15.8 MSM) while realisations dipped 5.8% YoY to | 211/sq mt (decline of 3.1% YoY to | 215/sq mt in H1), given the product mix. GIL's own manufacturing facility is operating at 107% utilisation as of Q2FY21 (much improved from 50% utilisations in Q1). With reopening of economy and traction in metro cities, we expect the overall plywood segment to recover gradually. Additionally, it is strengthening its sales penetration via addition of dealers' network in the rural areas, which should...

Greenply Industries' (GIL) consolidated Q2FY21 revenue slipped 22% YoY, but still bettered estimates.

Key takeaways from our interaction with the management of Greenply Industries (GIL).

Greenply Industries' (GIL) consolidated Q1FY21 revenue declined 62% YoY as India sales dropped 65% due to the lockdown and Gabon subsidiary revenue fell 43%.

Gabon to recover faster. The Gabon operation was closed for only a week `in Apr'20 and is now ramping up well with face veneer supplies to Europe, the Mid-East, and India. Management expects a rise in face-veneer volumes in...

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Key takeaways from our roadshow with the management of Greenply Industries (GIL).

Greenply Industries' (GIL) consolidated Q3FY20 revenue slipped 1% YoY, coming in below estimates.

In the plywood business, GIL's market share was at 26% of the | 4,500 crore organised plywood market (total plywood industry size: ~| 19,000 crore) with a pan-India network of 1,870 distributors/stockists, 6,000 retailers serviced by 27 branches. Currently, its product portfolio consists of 64%, 36% premium, mid-to-low segment plywood in volume terms (72%, 28% in value terms), respectively. To gain market share by increasing presence in the mid-to-low segment, GIL had earlier launched plywood under Bharosa & Jansathi brands. Going ahead, the management is aiming at premium, mid...