Greenply Industries Ltd. share price target

GIL reported Q4FY21 consolidated revenue growth of 15% YoY backed by a 21% uptick in India business

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

GIL's stricter working capital control and cost has imparted strength to the balance sheet. We raise our FY21, FY22 earnings by 6%, 26%, respectively. The continued demand from Europe and newer areas will hold the key for Gabon, going ahead. Furthermore, while plywood is expected to grow handsomely on a benign base, GIL's relative market share, traction thereafter will be key for further rerating after sharp run up in share price of ~72% in last three months. We roll over to FY23 and maintain HOLD with a...

Greenply Industries' (GIL) consolidated Q3FY21 revenue dipped 2% YoY, bettering our estimate of a 6% drop.

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).

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...

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