Shares of Greenlam Industries gained 20 per Cent on Monday’s early trades to reach an intraday high of ₹ 376.25 apiece on the National Stock Exchange (NSE), after the company reported robust results for the quarter and year ended on March 31, 2023. At 12:12 PM, its shares were trading at ₹ 357.00, up 13.86 per cent.
Greenlam Industries manufactures laminates, decorative veneers, engineered wood flooring and allied products. It imports raw materials for manufacturing and sells the manufactured goods in both domestic and overseas markets.
In the latest quarter, the company reported net revenue at ₹ 533.8 Crores, indicating a growth of 15.2 per cent year on year (YoY). Its EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at 74.1 crores, up 49.4 per cent YoY and net profit at ₹ 46.1 crores, up 79.7 per cent YoY.
For the entire year (FY23), Greenlam Laminates posted revenue of ₹ 2026.0 crores, translating to an 18.9 per cent growth YoY. It reported EBITDA at ₹ 232.9 crores, up 24.5 per cent YoY and net profit at ₹ 128.0 crores, up 41.4 per cent YoY. Its net debt stood at ₹ 312.00 crores on March 31, 2023, against ₹ 148.1 crores in the previous year.
In addition, the company has updated its manufacturing facility at Prantij, Gujarat and commercial production commenced on May 17, 2023. The plant’s capacity has increased to 5.4 million sheets from 3.4 million sheets earlier. In the latest quarter, it witnessed tailwinds such as a significant softening of sea freight costs.
The company’s management is expecting 20-25 per cent growth in the current financial year as new capacities come onstream and businesses continue to do well.
With a market capitalization of ₹ 3,982 crores, Greenlam Industries is a small-cap company. It has a return on equity of 14.78 per cent and an ideal debt-to-equity ratio of 0.44. The company’s shares were trading at a price-to-earnings ratio (P/E) of 35.72 and it has a dividend yield of 0.38 per cent.
Greenlam Industries’ promoters hold a 51.22 per cent stake in it followed by retail investors with 34.27 per cent, mutual funds with 13.07 per cent and foreign institutions with 1.44 per cent.
Written By Simran Bafna
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