SmallCap Stocks to Buy: The shares of Greenply Industries Ltd (NSE: GREENPLY), a company doing plywood business in the country, seem ready for a new rally. Brokerage firm has advised to buy this share and keep it in the portfolio from a long-term perspective (6-12 months).
The brokerage says that the growth outlook of the company is strong. In the last year, investors in this stock have got more than 100 percent returns.
Greenply Industries: Price Will Touch ₹320
Brokerage house has advised to buy Greenply Industries. Also, from the perspective of 6-12 months, the target per share has been kept at Rs 324.
On February 27, 2024, the share price was at Rs 273. In this way, a strong rise of about 18 percent in the stock can be from the current price.
This stock has earned greater than 100% return over the past year. The returns for the last 6 months are around 65 percent.
The stock has increased by 15 percent over the past month. The 52-week high of the stock is 280 and the low is 133.85.
Let us tell you, that Greenply Industries is a leading company of plywood businesses in India. Its annual capacity is 48 mn sq. is mt. The company has a distribution network across the country.
There are more than 2,300 dealers/authorized stockists. The company has entered into the MDF board business.
For this, a manufacturing plant has been started in Vadodara (Gujarat). This can generate annual revenue of Rs 650-700 crore. The company will make a capex of Rs 40 crore for the MDF segment in FY25.
Greenply Industries: What Is The Brokerage’s Opinion?
The brokerage house says that in the last 2-3 years, a large part of the real estate will start being completed in the financial year 2025.
This will lead to rapid growth in the building materials segment including wood panels (ply, laminates, and MDF). Greenply will be the biggest beneficiary in this.
The brokerage says that entry in the MDF segment can bring strong growth in the company’s revenue and margins. The import of MDF is still very high.
This may decrease from the financial year 2025. Currently, the MDF margin is 13.5 percent. It could be around 20 percent.
Apart from this, plywood volume growth can be 8-10 percent. Improvement in margins and earnings will improve the return ratio and reduce debt.
About Greenply Industries Ltd Company
Greenply Industries Limited is a company. It is principally involved in the production of plywood as well as the trading of plywood and other related products.
The product range of the company includes blockboards and plywood ornamental and flush doors specialty plywood, as well as Polyvinyl Chloride (PVC) items. It provides a range of blockboards and plywood under the brands Green, Ecotec, Bharosa Ply, and Jansathi.
The company offers a variety of decorative veneers available under the brand names Wood Crrests, Royal Crown, Burma Teak, and Engineered Veneers.
The Company produces specialty plywood for a variety of requirements, ranging from automobiles, and railways to construction-specific uses for building structures.
The company offers PVC doors, and boards along with plastic segments under its Green Ndure brand.
Fundamental Analysis of Greenply Industries Ltd
| Market Cap | ₹ 3,398 Cr. |
| Current Price | ₹ 276.35 |
| 52-wk High | ₹ 280 |
| 52-wk Low | ₹ 134 |
| Stock P/E | 73.6 |
| Book Value | ₹ 53.2 |
| Dividend | 0.18 % |
| ROCE | 11.6 % |
| ROE | 14.1 % |
| Face Value | ₹ 1.00 |
| P/B Value | 5.16 |
| OPM | 7.74 % |
| EPS | ₹ 4.27 |
| Debt | ₹ 757 Cr. |
| Debt to Equity | 1.15 |
Greenply Industries Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹280 | ₹330 |
| 2025 | ₹332 | ₹356 |
| 2026 | ₹376 | ₹400 |
| 2027 | ₹404 | ₹437 |
| 2028 | ₹465 | ₹500 |
| 2029 | ₹505 | ₹535 |
| 2030 | ₹545 | ₹600 |
Greenply Industries Ltd Shareholding Pattern
| Promoters Holding | |
| Dec 2022 | 52.32% |
| Mar 2023 | 52.32% |
| June 2023 | 52.14% |
| Sept 2023 | 52.12% |
| Dec 2023 | 51.97% |
| FII Holding | |
| Dec 2022 | 2.32% |
| Mar 2023 | 2.16% |
| June 2023 | 2.15% |
| Sept 2023 | 2.07% |
| Dec 2023 | 4.10% |
| DII Holding | |
| Dec 2022 | 32.94% |
| Mar 2023 | 32.87% |
| June 2023 | 32.41% |
| Sept 2023 | 32.39% |
| Dec 2023 | 29.76% |
| Public Holding | |
| Dec 2022 | 12.42% |
| Mar 2023 | 12.65% |
| June 2023 | 13.29% |
| Sept 2023 | 13.41% |
| Dec 2023 | 14.16% |
Greenply Industries Ltd Share: Last 5 Years’ Financial Condition
To better understand how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 1,412 Cr |
| 2020 | ₹ 1,420 Cr |
| 2021 | ₹ 1,165 Cr |
| 2022 | ₹ 1,563 Cr |
| 2023 | ₹ 2,174 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 80 Cr |
| 2020 | ₹ 47 Cr |
| 2021 | ₹ 61 Cr |
| 2022 | ₹ 95 Cr |
| 2023 | ₹ 53 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0.66 |
| 2020 | 0.63 |
| 2021 | 0.36 |
| 2022 | 0.54 |
| 2023 | 1.03 |
Last 10 Years’ Profit Growth:
| 10 Years: | -4% |
| 5 Years: | -6% |
| 3 Years: | 1% |
| Current Year: | -54% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 18% |
| 5 Years: | 16% |
| 3 Years: | 16% |
| Last Year: | 14% |
Sales Growth Over 10 Years:
| 10 Years: | -1% |
| 5 Years: | 15% |
| 3 Years: | 9% |
| Current Year: | 19% |
Conclusion
This article is a complete guide about Greenply Industries Ltd Share. This information and forecasts are based on our research, company fundamentals, history, experiences, and technical analyses.
Also, We have discussed the share’s prospects and growth potential in detail.
This information will help you in your further investment.
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