ICICI Direct has given Hold recommendation for Greenply Industries with a target price of Rs. 200 in its research report issued on May 17, 2022

ICICI Direct’s research report on Greenply Industries

Greenply Industries (GIL) is one of the leading players in the plywood business in India. It has a distribution network of 2,350+dealers/authorised stockists pan-India. It is foraying into the MDF boards business with greenfield manufacturing set-up at Vadodara, Gujarat of 800 CBM/day (capex of ~Rs 580-85 crore) with revenue potential of ~Rs 700-750 crore per annum at its peak utilization.

Outlook

We maintain our HOLD rating on the company. We value GIL at Rs 200/share (at 20x FY24E P/E).

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