Greenlam Industries Ltd (GREENLAM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Stylam Industrie

Century Plyboard

Greenlam Industr

Archidply Inds.

Greenpanel Inds.

Airo Lam

W I Plywoods

Duroply Indust.

Greenply Industr

Rushil Decor

Sylvan Plyboard

Why is Greenlam Industries Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 9.28% of over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

INTEREST(Latest six months) At Rs 49.88 cr has Grown at 37.94%
ROCE(HY) Lowest at 6.49%
PAT(Q) At Rs 32.33 cr has Fallen at -6.6%

With ROCE of 6.5, it has a Attractive valuation with a 3.4 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -12.61%, its profits have fallen by -73.8%

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.56% over the previous quarter and collectively hold 16.33% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.56% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.61% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Greenlam Industr should be less than 10%
Overall Portfolio exposure to Plywood Boards/ Laminates should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Plywood Boards/ Laminates)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Greenlam Industr for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Greenlam Industr

-12.61%

-0.29

43.69%

Sensex

4.8%

0.41

11.82%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.57%

EBIT Growth (5y)

9.28%

EBIT to Interest (avg)

6.16

Debt to EBITDA (avg)

2.97

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

1.31

Tax Ratio

52.82%

Dividend Payout Ratio

15.21%

Pledged Shares

Institutional Holding

16.33%

ROCE (avg)

12.17%

ROE (avg)

11.74%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

205

Industry P/E

Price to Book Value

5.73

EV to EBIT

52.64

EV to EBITDA

27.61

EV to Capital Employed

3.40

EV to Sales

2.76

PEG Ratio

Dividend Yield

0.16%

ROCE (Latest)

6.46%

ROE (Latest)

2.79%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET SALES(Q)

Highest at Rs 808.26 cr

PBDIT(Q)

Highest at Rs 104.39 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 12.92%

PBT LESS OI(Q)

Highest at Rs 44.90 cr.

-16What is not working for the Company

INTEREST(Latest six months)

At Rs 49.88 cr has Grown at 37.94%

ROCE(HY)

Lowest at 6.49%

PAT(Q)

At Rs 32.33 cr has Fallen at -6.6%

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Here's what is working for Greenlam Industr

Net Sales - Quarterly

Highest at Rs 808.26 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 104.39 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 12.92%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 44.90 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Greenlam Industr

Interest - Latest six months

At Rs 49.88 cr has Grown at 37.94%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit After Tax (PAT) - Quarterly

At Rs 32.33 cr has Fallen at -6.6%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)