ICICIDirect maintains hold on Greenply, target price Rs 160

ICICIdirect has maintained hold rating on Greenply Industries with a long term target price of Rs 160. The stock ended down 0.55% at Rs 143.90 on Friday.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 349.45 crore, down -10.80 % from last quarter Sales of Rs 391.75 crore and up 13.11 % from last year same quarter sales of Rs 308.95 crore. The company has reported net profit after tax of Rs 21.70 crore in latest quarter.


Investment Rationale

Greenply is moving towards an assetlight business model by targeting growth through outsourcing remains the silver lining for the company, said ICICIdirect. However, with the domestic plywood business growing at a muted rate, Greenply is expected to derive growth largely from exports business in Gabon, which should be watched, due to dynamics in the international market, said ICICIdirect.