- Greenply Industries Limited (GIL) enjoys leadership position in plywood and medium density fibreboards (MDF) accounting for almost 26 percent of the organized plywood and 30 percent of the MDF market in India.
- The company achieved a turnover of Rs. 4460.97 mn for the 2nd quarter of the FY 2017-18 as against Rs. 4686.66 mn in the corresponding quarter of the previous year.
- During the quarter, EBIDTA stood at Rs. 647.50 mn as against Rs. 672.47 mn in Q2 FY17.
- Profit before tax (PBT) stood at Rs. 510.77 mn in Q2 FY18 as against Rs. 481.74 mn in the corresponding quarter of the previous year.
- During the quarter, net profit rose by 3.66% andI stood at Rs. 363.79 mn as against Rs. 350.95 mn in the corresponding quarter ending of previous year.
- EPS of the company stood at Rs. 2.97 in Q2 FY18 against Rs. 2.86 in the corresponding quarter of the previous year.
- Setting up of new facility in Uttar Pradesh to expand capacity by 40% in premium segment.
- The Company has incorporated a wholly owned subsidiary company named GREENPANEL INDUSTRIES LIMITED in India.
- Net Sales of the company stood at Rs. 8601.70 mn in H1 FY 18 as against Rs. 9103.82 mn in previoous half year.
- Net Profit for H1 FY 18 stood at Rs. 670.10 mn as compared to Rs. 692.02 mn in H1 FY 17.
- Net Sales and PAT of the company are expected to grow at a CAGR of 6% each over 2016 to 2019E.
Outlook and Valuation
At the current market price of Rs. 339.90, the stock P/E ratio is at 29.08 x F Y18E and 26.68 X F Y19E respectively.
Earning per share (EPS) of the company for the earnings for F Y18E and FY19E is seen at Rs. 11.69 and Rs. 12.74 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 6% each over 2016 to 2019E.
On the basis of EV/EBITDA, the stock trades at 17.17 x for F Y18E and 16.09 x for F Y19E.
Price to Book Value of the stock is expected to be at 4.48 X and 3.84 x for F Y18E and F Y19E respectively.
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Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.
Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ, Themarkets.com, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.
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