For 4QFY2018, Greenply Industries disappointed both on the top-line as well as
on the bottom-line front. Revenue de-grew by ~8.6% yoy to `437cr on an
account of poor performance in Plywood segment as well as in MDF segment. On the operating front, margins contracted by 228bps due to due to lower realisations in Plywood and losses in Wallpaper and others category. During the quarter, PAT de-grew by ~22% yoy to `33cr on account of lower revenue and
poor operating margin.

Outlook & Valuation: We forecast GIL to report top-line CAGR of ~15% to `2,256cr over FY18-20E on the back of strong brand and distribution network. On the bottom-line front, we estimate ~12% CAGR to `139cr owing to improvement in volumes. We recommend Buy with a revised target price of `364.

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