Add Greenlam Industries, target price Rs 360: HDFC Securities

HDFC Securities has add call on Greenlam Industries with a target price of Rs 360. The current market price of Greenlam Industries is Rs 331.65.

Greenlam Industries, incorporated in the year 2013, is a Small Cap company (having a market cap of Rs 4185.04 Crore) operating in Building Materials sector.

Greenlam Industries key Products/Revenue Segments include Decorative Laminates, Decorative Veneer, Export Incentives, Engineered Wood Flooring, Engineered Door Sets & Door Leaf, Others, Melamine Faced Chipboards, Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 523.23 Crore, up 10.61 % from last quarter Total Income of Rs 473.02 Crore and up 14.67 % from last year same quarter Total Income of Rs 456.29 Crore. Company has reported net profit after tax of Rs 29.18 Crore in latest quarter.

The company’s top management includes Mr.Shiv Prakash Mittal, Mr.Saurabh Mittal, Ms.Parul Mittal, Mr.Sandip Das, Ms.Matangi Gowrishankar, Mr.Yogesh Kapur. Company has S S Kothari Mehta & Co as its auditors. As on 30-06-2022, the company has a total of 12 Crore shares outstanding.

Investment Rationale
The brokerage likes Greenlam for its leadership positioning in laminates (both in exports and domestic). Its large laminates capacity expansions in FY23 will accelerate segmental growth during FY23-25E. The company is also foraying into the high-growth particle board market in Q4FY24with modern machinery to meet the rising demand from furniture OEMs.

Promoter/FII Holdings
Promoters held 53.9 per cent stake in the company as of 30-Jun-2022, while FIIs owned 1.51 per cent, DIIs 14.2 per cent.