Rs 38 to Rs 348: This stock turned into a multibagger in three years but trading in overbought zone

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Shares of multibagger Greenpanel Industries Ltd person delivered implicit 800% percent returns to investors successful the past 3 years. The stock, which closed astatine Rs 44.75 connected September 11, 2020 roseate to Rs 390.80 successful the erstwhile league (September 11, 2023), clocking 773.29% returns during the period. In comparison, Sensex has risen 72.77% successful 3 years. In the erstwhile session, Greenpanel Industries banal closed 1.98% higher to Rs 390.80 connected BSE. Earlier, the banal opened level astatine Rs 382 against the erstwhile adjacent of Rs 383.20 connected BSE.

The stock belonging to the woodpanel manufacture has gained 14.15% this twelvemonth but fallen 10.41% successful a year.

Total 0.24 lakh shares of the steadfast changed hands amounting to a turnover of Rs 94.14 lakh successful the erstwhile session. Market headdress of the steadfast roseate to Rs 4,792.28 crore. The banal deed a 52-week debased of Rs 255 connected March 29, 2023 and a 52-week precocious of Rs 448.90 connected September 15, 2022.

In presumption of technicals, the comparative spot scale (RSI) of the banal stands astatine 73.1, signaling it's trading successful the overbought zone. Greenpanel Industries shares person a beta of 0.8, indicating precise debased volatility successful a year. Greenpanel Industries shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 time and 200 time moving averages.

Brokerage Systematix successful a study said, "MDF remains the fastest maturation class successful India’s Rs 40,000 crore wood sheet industry. Mushrooming acceptance and request for MDF, home readymade furnishings accumulation station COVID, and ample export opportunities person driven established (GREENP, Action Tesa, Rushil Décor) and caller players (Century Ply, Greenply) to acceptable up ample MDF capacities successful India."

"We similar Greenpanel connected its marketplace enactment successful MDF and robust financials (11%/9%/8% CAGR successful revenue/EBITDA/PAT implicit FY23-25E, 18% RoE and steadfast FCFs, contempt continued capex). Our people terms of Rs 439 is based connected 21x/18x FY24E/FY25E P/E," added the brokerage.

Brokerage Prabhudas Lilladher has assigned a people terms banal of Rs 459 for the stock.

“We are maintaining our affirmative presumption considering 12.7% MDF measurement maturation and 22.1% EBITDA borderline successful MDF conception (MDF contributes 86% revenue) successful FY24. We estimation FY23-25E Revenue/EBITDA/PAT CAGR of 8.9%/2.8%/0.7%, with MDF measurement CAGR of 17.4% and EBITDA per CBM of astir Rs 6,060 successful FY25. The institution is well-positioned for maturation and worth instauration fixed its 1) starring presumption successful home MDF conception 2) beardown maturation prospects successful home MDF request 3) planned capableness summation of 35% implicit FY23-25 and 4) extended organisation network. We person tweaked our FY24/FY25 net to set one-off expenses successful Q1FY24 and adoption of caller taxation authorities by GREENP. We worth the banal astatine 21x FY25 EPS and get astatine TP of Rs459 (Rs 455 earlier). Maintain ‘BUY’ rating,” said the brokerage.

Seven promoters held 53.10 per cent involvement successful the steadfast and 1,21,289 nationalist shareholders owned 46.90 per cent oregon 5.75 crore shares for the 4th ended June 2023. Of these, 1.17 lakh nonmigratory individuals held 1.96 crore shares oregon 16.01% involvement with superior up to Rs 2 lakh. Only 4 shareholders with 1.62% involvement oregon 19.91 lakh shares held superior supra Rs 2 lakh for the 4th ended March 2023.

In the June 4th of this fiscal, Greenpanel Industries posted nett net of Rs 37.3 crore against Rs 77.6 crore nett during the 4th ended June 2022. Sales fell to Rs 392.6 crore successful Q1 against Rs 471.3 crore during the 4th ended June 2022.

Profit earlier taxation fell to Rs 50 crore successful the June 2023 4th against Rs 117.9 crore successful the June 2022 quarter.

EBITDA borderline successful the June 4th fell to 17.04% arsenic against 28.35% YoY. EBIDTA during Q1 came astatine Rs 65.8 crore against Rs 131.5 crore against the aforesaid 4th successful the erstwhile year.

About the Company

Greenpanel Industries, antecedently known arsenic Green Panelmax, is the largest shaper of MDF successful India and Asia. Its manufacturing plants person a combined yearly capableness of much than 6,66,000 cubic meters of MDF complemented by organisation web of 3,000-plus outlets dispersed crossed the country. The institution has state-of-the-art manufacturing plants successful Uttarakhand and Andhra Pradesh.

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Source Businesstoday