Anand Rathi has given Buy recommendation for Greenlam Industries with a target price of Rs. 2370 in its research report issued on Jan 24, 2022

Anand Rathi’s research report on Greenlam Industries

Continuing to lead in laminates, Greenlam’s healthy pace of business is expected to keep its revenue growth momentum strong and expand margins. To address capacity constraints and become a one-stop destination for all surfacing and substrate needs, the company has embarked on vigorous expansion and diversification to allied areas gradually. It has a healthy, lean and strong balance sheet, helping management explore organic and inorganic opportunities.

Outlook

We roll forward our target to FY24e earnings. For its bright business prospects, and lean, healthy and strong balance sheet, we upgrade our rating to a Buy, with a revised TP of Rs.2,370 (based on the long-term average PE (35x FY24e earnings of Rs67.7) implying 29.6% potential.

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