Shares of Greenlam Industries rise over 12% In Friday’s deals on BSE, 384 against, its shares were split in the ratio of 5:1 on the record date. Brokerage house Anand Rathi has given buy rating on multibagger stock Post its third quarter results as it prefers Greenlam for its bright business prospects and lean, healthy and strong balance sheet.
The brokerage firm’s buy tag comes with a target price 474 per share. “We are confident that the company will deliver Revenue / EBITDA / Adjusted Earnings (CAGR) of 21% / 22.9% / 24% in FY 2011-24 on account of strong business environment and stable input costs, which are likely to cool off. in the future,” it added.
Greenlam Industries’ revenue grew 24.4% year-over-year (YoY) during the third quarter, however, earnings before interest, taxes, depreciation and amortization (EBITDA) and net profit were down 7.9% and 15.8% from the year-ago period. quarter respectively.
“Performance was hit by the closure of “i) Behror plant and ii) volatile raw material prices, margin cut. Revenue increased on higher receipts and timely expansion projects,” the note highlighted.
Its Behror plant temporarily closed due to environmental issues, completely shut down from 10 to 16 December; Then for the rest of December’21 and in January’22 with restrictions (removed from 4 February). Management said that approx. As a result there was a loss of 400m-500m in sales.
Greenlam Industries is engaged in manufacturing of laminates for various commercial and residential applications. The Company has fixed February 11, 2022 as the ‘Record Date’ for the sub-division/split of the face value of the equity shares of the Company by the face value of Rs. Face value of Rs.5/- per share. 1/- per share. The stock is quoted on an ex-split basis from Thursday, February 10, 2022.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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