Greenply Q1 Results Review - Robust Performance On Higher Share Of Value-Added-Products: IDBI Capital

IDBI Capital Report

Greenply Industries Ltd. Q1 FY25 operational performance was ahead of our and street expectations across all fronts. Revenue grew 36% YoY to Rs 5.8 billion on healthy performance across segments.

Ebitda increased by 114% YoY to Rs 579 million. Ebitda margin expanded by 362 basis points YoY to 9.9%, mainly led by Medium Density Fiberboard segment’s improved product mix and a higher share of value added products. Profit after tax stood at Rs 331 million, including a tax refund of Rs 119 million.

Greenply aims to incur capex of Rs 700 million on in-house resin capacity, acquiring machines for VAP, and maintenance capex in FY25 while maintaining net debt levels at Rs 4.5 billion. We increase our FY25/FY26 earning per share estimates by 7%/4%, respectively.

We now value the stock at PER of 25 times FY26 earning per share and derive a target price of Rs 340 but we maintain our 'Hold' rating on the stock as we await a better entry point.

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