Greenply Industries Ltd (GIL) manufactures plywood & allied products and medium
density fibreboards (MDF). GIL offers a portfolio of residential and commercial
products comprising plywood & block boards, MDF, wood floors, flush doors and
decorative veneers. GIL offers wood floors under the brand name Green Floormax.
Currently, GIL has ~26% market share in the organized plywood industry.

Outlook and Valuation: We expect GIL to report net revenue CAGR of ~14% to
~`2,478cr over FY2017-20E mainly due to healthy growth in plywood & lamination
business and MDF (capacity expansion) on the back of strong brand and distribution
network. On the bottom-line front, we expect ~13% CAGR to `179cr over the same
period owing to strong revenue and better margins in MDF business. At the current
market price of `340, the stock trades at PE of 23.3x its FY2020E EPS of `14.6. We
initiate coverage on GIL with Buy recommendation and Target Price of `395 (27x
FY20E EPS), indicating an upside of ~16% from the current levels.

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