Greenpanel Industries: A multibagger that keeps on outperforming

Greenpanel Industries is a market leader of MDF segment in India. MDF stands for medium-density fibreboard. On a YTD basis, the company's stock is up by nearly 70 per cent while in one year, it is up by more than 600 per cent. 

The stock has run up steeply recently thus, pushing the P/E multiples to higher than 72 levels. In the month gone by when Sensex had cracked by more than 2 per cent, the stock was up by more than 33 per cent thereby, indicating buying interest in the counter.  

The demand scenario for the domestic MDF industry is healthy right now, owing to the rapid displacement of low-end plywood by MDF, drying up of imports due to ocean freight bottlenecks and aggressive penetration strategies by the larger players. There is a visible pick up in online sales in furniture segment while the organised players such as IKEA are in expansion mode in India, which provides the growth visibility for the domestic MDF industry in India.  

Being a market leader in a fast-growing industry, Greenpanel Industries is one of the biggest beneficiaries of the existing trend.  

Meanwhile, a better-than-expected demand scenario with the rising prices is making the company a hot cake amongst the investors.  

On Friday, the stock of the company was seen trading at Rs 210.55 per share, down by 0.92 per cent or Rs 1.95 per share.