Buy Greenply Industries, target Rs 290 : Religare Securities

Religare Securities has a buy call on Greenply Industries Ltd. with a target price of Rs 290 .The current market price of Greenply Industries Ltd. is Rs 275 The time period given by the brokerage is long term for Greenply Industries price to reach defined target. The brokerage said demand for plywood and MDF has not improved materially over Q1FY17. It said the management's FY17 EBITDA margin guidance remains intact at about 10% for plywood and 28-29% for MDF. Religare is positive given its leadership position and expects an earnings CAGR of 19% during FY16-18.