Greenply Industries Ltd. share price target

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...

BUY Greenply Industries Ltd at CMP Rs.253 and add on dips to Rs. 224- 230 for the Target of Rs. 285, 321

EBIT stood at `49.8crs in Q1FY17 recording a growth of 17.5% Y-O-Y, with margins expanding ~80bps on a Y-O-Y basis. Segmental EBIT followed suit with Plywood and MDF recording EBIT margins of 7.5% (+170bps) and 25.8 %(-100bps) respectively. Reported Profit after Tax grew by 26.4% Y-O-Y to `34.1crs in this quarter. PAT Margin too went up to 8.2% as opposed to 7.1% in this quarter last year. Profitability improved on...

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Greenply Industries (GIL) is a leading plywood player (~26% market share) and a market leader in the MDF segment (30% market share) in the organised segment of the wood panel industry. With a strong pan-India presence, well entrenched distribution network, GIL is likely to ride the transition towards the organised space with expected roll-out of GST. Consequently, we expect topline/bottomline to grow at 11.5%/16.5% CAGR, respectively, in FY16-18E. Hence, we initiate coverage on GIL with a BUY recommendation and target price of | 225 (16x FY18E EPS).

Sustainable raw material linkage envisages long term visibility Consistent supply of quality raw materials is critical for long-term sustainability of plywood business. Greenply Industries Ltd. (GIL) planted over 3 Mn saplings in 2014-15 in order to ensure sustainable raw material availability through farm/ agro-forestry around all manufacturing units to reduce dependence on overseas timber and bring down logistical costs. GIL also entered into a joint venture with a Singapore based company to control and run the veneer manufacturing facility in Myanmar through joint venture.