Fundamental Analysis

GREENPANEL INDUSTRIES 

Ticker : 542857
BUY: ₹ 482.70
Target: ₹ 540

Greenpanel Industries Limited is engaged in the manufacturing of plywood, medium-density fibreboards (MDF), and allied products. The company's product portfolio includes medium-density fibreboard (MDF), wood floors, plywood, veneers, and doors. On the consolidated quarterly front, the company recorded an increase of 33.92 per cent in the net sales & operating income, which stood at Rs 424.42 crore for Q3FY22 as compared to Rs 316.93 crore reported for Q3FY21. The operating profit stood at Rs 113.38 crore in Q3FY22, zooming 64.77 per cent from Rs 68.81 crore posted in Q3FY21. The company's net profit was recorded at Rs 63.08 crore in Q3FY22, strongly rising from Rs 30.45 crore earned in Q3FY21. The company has reported excellent quarterly results despite the MDF unit at Uttarakhand being inoperative for nearly half the quarter. The company’s efforts to widen distribution reach as well as focus on small urban clusters are supporting the sustained volume growth and also, helping in reducing working capital outlay. Hence, we recommend BUY.