ICICI Direct's research report on Greenply Industries
Greenply Industries (GIL) is oane the leading players in the plywood business in India. It has a distribution network of 2,350+dealers/authorised stockists pan-India. It is foraying into the MDF boards business with greenfield manufacturing at Vadodara, Gujarat of 800 CBM/day (capex of ~Rs 555 crore) with revenue potential of ~Rs 600-650 crore per annum, to be commissioned by Q4FY23.
Outlook
We maintain our HOLD rating on the company. GIL’s relative market share in plywood and traction thereafter will be one of the factors to be monitored. We would also monitor input prices for interim margins impact. Furthermore, while foray into MDF is positive, one has to be cautious at the possibility of increased capacities impacting the economics. We value GIL at Rs 195/share (at 20x FY24E P/E).
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