Greenply Industries - Attractive Valuation, Potential Dark Horse: Anand Rathi

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Anand Rathi Report.Healthy plywood growth and its asset-light model provides Greenply Industries Ltd. flexibility to raise volumes on mounting demand. The Sandila (Uttar Pradesh) manufacturing plant (13.5 million square metre) commissioned in Q1 FY23 is near optimum utilisation and commissioning of the 7.5 million square metre, capacity at Hapur, UP (a partner facility) is expected soon (March 2023). An 11.4% volume compound annual growth rate expected over FY22-25. Prices of chemicals have declined, and high timber prices have started to cool. Hence, margins are expected swing up. Medium Density fibre capacity (240,000 cubc metres) at Vadodara is expected to begin by Q1 FY24. Robust demand led to domestic manufacturers scaling up capacities, besides increasing imports. This led to margins steeply sliding from highs of 30-32%; 23-25% however, seems sustainable. Gabon operation traversing a rough patch; yet to pick up pace. Expected input-cost easing would expand margins. Risks: Demand slowdown, rising competition, reasonably priced raw material..Click on the attachment to read the full report:.NCC - Robust Order Backlog Provides Strong Revenue Visibility: HDFC Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Greenply Industries - Attractive Valuation, Potential Dark Horse: Anand Rathi

With significant growth momentum in real estate, especially semi-urban and rural, it expects good demand for wood panels.

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