Greenply Industries Ltd.

Current price BSE

991.50

Sector

PLYWOODS

No of shares

241.46(in millions)

52 week high

2176.00

52 week low

344.25

BSE Sensex

28376.38

Nifty

8723.30

Average Volume

15973

BSE Code

526797

NSE Symbol

GREENPLY

Company Overview

Greenply Industries Ltd. (GIL) is a manufacturer and marketer of interior infrastructure products, based in India. Greenply Industries Limited, an interior infrastructure company, manufactures, markets, and distributes plywood, laminates, particleboards, and allied products primarily in India. Its interior infrastructure products include decorative veneers and laminates, plywood, block boards, flush doors, medium density fiberboards, and restroom cubicles, laminated flooring and UV coated panels, and others.

Greenply Industries Ltd offers its products under the Greenlam, Greenply Plywood, Green Club Premium Ply, Greenlam Laminates, Green Decowood, Ecotec, and Green Panelmax brand names through 46 marketing offices and a network of approximately 15,000 distributors, dealers, sub- dealers, and retailers. Greenply Industries Limited also exports its products to North America, Latin America, Europe, the Middle East, and the Asia Pacific. The company markets its products in 65 countries which include Thailand, Indonesia, Canada, Singapore, UAE, Australia, Saudi Arabia, Russia and China.

Greenply Industries Ltd was formerly known as Mittal Laminates Private Limited and changed its name to Greenply Industries Limited in 1995. Greenply Industries Limited was founded in 1990 and is headquartered in Kolkata, India.

The current market capitalization stands at Rs 2,375.02 crore. The company has reported a standalone sales of Rs 390.52 crore and a Net Profit of Rs 26.14 crore for the quarter ended Dec 2014.

Share Holding Pattern

Category

No. of Shares

Percentage

Promoters

13,275,000

55.00

General Public

4,700,889

19.48

Foreign Institutions

3,689,799

15.29

NBFC and Mutual Funds

1,913,642

7.93

Other Companies

504,179

2.09

Foreign - NRI

48,049

0.20

Others

4,816

0.02

Financial Details
  • Market Cap (Rs Cr) – 2375.02

  • Company P/E (x) – 18.27

  • Industry P/E (x) –40.06

  • Book Value (Rs) – 241.84

  • Price / BV (x) – 4.04

  • Dividend (%) – 60%

  • EPS (TTM) – 53.95

  • Dividend Yield (%) – 0.30%

  • Face Value (Rs) – 5

Industry Overview

The segment in which Greenply Ltd. operates, plywood and laminates, can be classified as discretionary spending in the housing segment. Demand-supply dynamics in this segment greatly depend on real estate- sector growth/churn and changing lifestyle preferences. General economic growth and demographic factors have a huge bearing. Improving income streams/levels, nuclear family structure, and easier financing options have propelled growth of housing-stock in India.

The size of the plywood sector is estimated at 160bn, with laminates at `42bn, and has registered a 6% CAGR in the past five years. Within this, the organised sector accounts for a mere 30%. Improving quality preferences and well-marked brand equity are now slowly heralding a shift towards branded products in the market; and that is accentuating the shift towards the organised players. Another dogma of the sector is that most dealing in the industry is in cash, even with end users. Of late, however, with the per-household ticket size increasing, the shift towards the banking system by end users is playing a role in tilting the balance in favour of regulated operators.

Overall, the sector is expected to register a 6% CAGR in the coming five years. Within this, the organized segment would outstrip sector growth at 25-30% as brand equity, quality, amongst others, make their impact felt on the dynamics of demand. The GST implementation could further erode the share of the unorganized sector.

Greenply Industries a dominant operator in the organised plywood market and accounts for ~25% of the organised market share. Laminate is used to provide an aesthetic look and improve the finishing to wooden furniture. Hence, it has a high degree of co-relation with the plywood market, and the latter has a huge influence on the laminate market. The peculiarity of this sector is that customer involvement is low so too are brand awareness and product knowledge. Other than being overlaid on plywood, laminates are also utilised in readymade furniture, largely from pre-laminated particle board and MDF. Laminates is now a `42bn industry and seeing an 8% CAGR..

Balance Sheet

 

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

Sources Of Funds

 

 

 

 

 

Total Share Capital

12.07

12.07

12.07

12.07

11.05

Equity Share Capital

12.07

12.07

12.07

12.07

11.05

Reserves

571.06

465.06

359.40

310.69

260.46

Networth

583.13

477.13

371.47

322.76

271.51

Secured Loans

381.16

354.56

345.56

434.49

366.57

Unsecured Loans

168.34

178.44

255.32

85.30

40.83

Total Debt

549.50

533.00

600.88

519.79

407.40

Total Liabilities

1,132.63

1,010.13

972.35

842.55

678.91

Application Of Funds

 

 

 

 

 

Gross Block

937.67

857.11

780.01

727.80

634.98

Less: Revaluation Reserves

0.00

0.00

0.00

0.34

0.95

Less: Accum. Depreciation

252.37

205.32

160.72

123.86

92.21

Net Block

685.30

651.79

619.29

603.60

541.82

Capital Work in Progress

94.99

23.37

13.50

10.54

13.49

Investments

31.29

17.53

8.75

8.75

4.13

Inventories

382.88

327.91

277.29

229.28

199.75

Sundry Debtors

350.28

343.21

290.87

212.75

151.13

Cash and Bank Balance

10.80

16.28

12.16

7.91

5.46

Total Current Assets

743.96

687.40

580.32

449.94

356.34

Loans and Advances

167.23

145.77

91.77

80.33

61.80

Fixed Deposits

0.00

0.00

0.00

5.50

13.46

Total CA, Loans & Advances

911.19

833.17

672.09

535.77

431.60

Current Liabilities

559.46

488.77

321.92

307.87

304.28

Provisions

30.67

26.96

19.37

9.00

8.83

Total CL & Provisions

590.13

515.73

341.29

316.87

313.11

Net Current Assets

321.06

317.44

330.80

218.90

118.49

Miscellaneous Expenses

0.00

0.00

0.00

0.77

1.00

Total Assets

1,132.64

1,010.13

972.34

842.56

678.93

Contingent Liabilities

633.65

315.36

478.57

85.65

72.52

Book Value (Rs)

241.60

197.68

153.90

133.72

122.87

Profit and Loss Account

 

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

Income

 

 

 

 

 

Sales Turnover

2,159.52

2,000.81

1,643.66

1,378.33

980.12

Excise Duty

0.00

0.00

0.00

55.42

37.21

Net Sales

2,159.52

2,000.81

1,643.66

1,322.91

942.91

Other Income

6.76

6.50

5.91

-9.20

8.21

Stock Adjustments

13.58

13.97

20.70

13.14

-2.74

Total Income

2,179.86

2,021.28

1,670.27

1,326.85

948.38

Expenditure

 

 

 

 

 

Raw Materials

1,313.84

1,214.89

1,030.52

769.27

522.52

Power & Fuel Cost

88.96

100.16

105.51

72.98

38.76

Employee Cost

193.51

161.68

130.01

106.40

80.65

Other Manufacturing Expenses

0.00

0.00

0.00

7.70

5.49

Selling and Admin Expenses

0.00

0.00

0.00

242.12

184.18

Miscellaneous Expenses

318.30

280.47

231.75

12.78

10.79

Total Expenses

1,914.61

1,757.20

1,497.79

1,211.25

842.39

Operating Profit

258.49

257.58

166.57

124.80

97.78

PBDIT

265.25

264.08

172.48

115.60

105.99

Interest

58.29

60.72

60.78

42.50

26.48

PBDT

206.96

203.36

111.70

73.10

79.51

Depreciation

57.57

51.99

46.77

40.99

22.02

Profit Before Tax

149.39

151.37

64.93

31.85

57.24

PBT (Post Extra-ord Items)

149.39

151.37

64.93

32.09

56.19

Tax

34.91

37.22

11.51

5.77

6.34

Reported Net Profit

114.47

114.16

53.41

25.09

49.57

Total Value Addition

600.78

542.31

467.27

441.98

319.88

Equity Dividend

7.24

7.24

4.83

2.41

3.31

Corporate Dividend Tax

1.23

1.23

0.78

0.39

0.55

Per share data (annualised)

 

 

 

 

 

Shares in issue (lakhs)

241.36

241.36

241.36

241.36

220.97

Earning Per Share (Rs)

47.42

47.30

22.13

10.39

22.43

Equity Dividend (%)

60.00

60.00

40.00

20.00

30.00

Dividend History

Index and Company Price Movement Comparison

Company Forecast

Technical Indicators

Symbol

Value

Action

RSI(14)

62.213

Buy

STOCH(9,6)

69.965

Buy

STOCHRSI(14)

89.825

Overbought

MACD(12,26)

7.000

Buy

ADX(14)

44.590

Buy

Williams %R

-16.134

Overbought

CCI(14)

108.9592

Buy

ATR(14)

18.8429

High Volatility

Highs/Lows(14)

20.8893

Buy

Ultimate Oscillator

54.622

Buy

ROC

210.132

Buy

Bull/Bear Power(13)

54.9540

Buy

Important Ratios (YoY)
  • PBIT – 11.96 v/s 12.87

  • RoCE – 18.33 v/s 20.99

  • RoE – 19.06 v/s 20.39

  • Net Profit Margin – 5.28 v/s 5.68

  • Return on net worth – 19.62 v/s 23.92

  • D/E Ratio – 0.92 v/s 1.12

  • Interest Cover – 3.56 v/s 3.49

  • Current Ratio – 0.91 v/s 0.89

  • Reserves – 571.06 cr v/s 465.06 cr

  • PAT – 114.47 cr v/s 114.16 cr

  • Total assets – 1132.64 cr v/s 1010.13 cr

  • Net sales – 2179.86 cr v/s 2021.28 cr

  • Book Value – 241.10 v/s 197.68

Simple Moving Average

Days

BSE

NSE

30

958.91

960.05

50

924.77

925.40

150

933.10

934.02

200

866.45

869.11

Investment Rationalize
  • Greenply Industries Ltd. (GIL) is in a healthy financial position with Rs.571.06Cr as reserves and and have made significant increase in production capacity to meet increasing market demand.

  • Greenply Industries Ltd have a well diversified product mix with plywood's and MDF and well established network of distributers and retailers.

  • Change in demography pattern and disposable income in Indian population along with increase in numder of nuclear families and increase in per capita expenditure on high quality interiors gives company a good growth opportunity.

  • Demerger of Greenlam Industries from Greenply industries will increase the profitability of the company.

  • Acquisition of raw materials domestically will reduce the logistics expenses significantly and it will add on to the profits.

  • Price to Sales Ratio of the Greenply Industries stands at 0.86% which implies the current market price of the company is still very much fairly valued.

  • Improvement in industrial construction and real estate sector will demand for the products of the company.

  • Revenue is growing in a healthy CAGR of 17.1% and the Gross Profit margin of the company is improving Year on year basis.

  • Improvement in demands for furniture and increase in exports will increase the sales.

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