Greenply Industries Ltd. share price target

EBITDA margins contracted 290 bps YoY to 13.1% (our estimate: 15.4%) due to a 300 bps contraction in the plywood division to 9.1 Net profit contracted significantly by 22.0% to | 32.6 crore (our expectation: | 39.8 crore) due to EBITDA margin contraction The board has recommended a dividend of | 0.6/ share for FY18 De-merging MDF business, Rudrapur plywood unit into Greenpanel The board has approved the de-merger of GIL's MDF business (both north plant and upcoming south plant), Rudrapur plywood unit, wood floors...

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. GIL produces residential and commercial floor products like plywood and block boards, MDF and wood floors, veneers etc....

Greenply Industries Ltd (GIL) manufactures plywood & allied products and medium density fibreboards (MDF). GIL offers a portfolio of residential and commercial products comprising plywood & block boards, MDF, wood floors, flush doors and decorative veneers. GIL offers wood floors under the brand name Green Floormax. Currently, GIL..

Plywood volumes grew strongly by 13.1% to 12.4 MSM (million square metre) (our estimate: 12.7 MSM) while MDF volumes grew 16.0% to 43790 CBM (cubic metre) (our estimate: 43639 CBM) EBITDA margins expanded robustly by 190 bps YoY to 15.7% (our estimate: 15.0%) led by expansion in MDF margins by 1360 bps YoY to 33.9% due to currency gains of | 8.2 crore at Andhra MDF facility Net profit zoomed 1.5x YoY to | 36.1 crore and was largely in-line...

Greenply Industries: MDF to be the growth driver, Plywood division to benefit from GST, Asset light model, ROE's to improve; Britannia Industries: Continued Focus on improving rural presence to propel growth, Long term strategic direction, Premiumisation on course

Management aims to commission new MDF facility by July, 2018 Greenply Industries (GIL) is setting up a new MDF facility in Andhra Pradesh with a capacity of 360,000 CBM entailing a capex of | 750 crore (already spent | 530 crore till Q2FY18). Construction is in full swing while the management is aiming to commission the plant three months ahead of schedule in July, 2018. It plans to operate the plant at 60% capacity utilisation in FY19E. The new plant will cater to southern demand (30% of GIL's MDF sales). The company would export the remaining portion. It is...

ICICI Securities Ltd | Retail Equity Research We attended the analyst meet of Greenply Industries (GIL). Key takeaways are:- (i) MDF division may drive future growth with management aiming to commission new Andhra facility by July, 2018, (ii) Plywood division is expected to grow at 12-15% CAGR in the next two years with benefits of GST, (iii) New UP plywood capacity (13.5 MSM) and Gujarat decorative veneer unit is expected to be commissioned in Q3FY19E, (iv) Reduction in GST rates from 28% to 18% and scheduled implementation of e-way bill...

EBITDA de-grew by 4% Y-O-Y to `68crs in Q2FY18. EBITDA margins contracted by ~90bps Y-O-Y to 14.3%. Margin contraction was primarily due to loss of `6 crs on foreign currency borrowings and outstanding for new MDF plant at Andhra Pradesh and due to higher advertising expenses. However, gross margins expanded by ~70bpson account of better capacity utilisations and improvement in MDF domestic realisation. EBIDTA margins in...

Revenues for Q2FY18 were ahead of our estimates led by better than expected growth in plywood volumes. Forex fluctuations and decline in plywood realizations impacted the margins. Lower than expected interest expense and lower tax expense led to net profit coming slightly ahead of our estimates. Company expects the volumes to start witnessing improvement from next year onwards once E-way bill gets implemented. Currently, the unorganized market is still not complying to the tax standards and hence the organized players are not able to benefit from the shift of market from unorganized to organized. But once...

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...