👀 At a Glance
- Market Cap: ₹3,339 Cr
- CMP: ₹272 (16 Jun 2025 close)
- P/E: 46.3×
- EV/EBITDA: 11.4× (FY25)
- ROCE: 4.5%
- ROE: 5.3%
- Debt/Equity: 0.30×
- MDF Market Share: 27% organized segment
- Eco-labelled: Yes, India’s only Ecolabel MDF maker
“Is the plywood in your pocket burning a hole in your wallet, or can Greenpanel’s 27% market share in MDF boards actually board the profits train?”
📌 Why You Should Swipe Right on Greenpanel
- 27% organized MDF market share – One in four MDF boards in India is stamped “Made by Greenpanel”
- Ecolabel pioneer – The only MDF company in India with an eco-friendly badge
- Multi-location footprint – Manufacturing plants in Maharashtra, Punjab & Tamil Nadu for pan-India reach
- High-margin rebate – MDF yields ~25% EBITDA margins vs 12–14% in plywood
SEO Keywords: Greenpanel Industries, MDF market share, eco-friendly MDF, plywood alternatives, Indian MDF companies
🔍 Business Snapshot: Boards, Bonds & Beyond
| Segment | FY25 Sales | FY25 EBIT%^ | Notes |
|---|---|---|---|
| MDF (Medium Density Fibreboard) | 65% | ~28% | Backbones for furniture, doors, paneling; captive forestry and resin integration |
| Plywood & Veneers | 25% | ~15% | Traditional wood paneling; price-competitive but margin-constrained by imported logs |
| Value-Added Products | 10% | ~25% | Pre-laminated boards, doorskin; higher ASP & niche clientele |
^EBIT margins exclude other income & finance costs
Pro Tip: MDF’s inelastic demand from furniture/EPC makes Greenpanel the “cement of the interiors”—silent but structural.
📈 Five-Year Financial Recap
1. Revenue & Profit Trajectory
| Year | Sales (₹ Cr) | PAT (₹ Cr) | EPS (₹) | EBITDA Margin |
|---|---|---|---|---|
| FY21 | 1,624 | 233 | 19.03 | 26% |
| FY22 | 1,783 | 230 | 18.75 | 23% |
| FY23 | 1,567 | 135 | 11.03 | 16% |
| FY24 | 1,436 | 72 | 5.88 | 9% |
| FY25 | 1,624 (est.) | 72 | 5.88 | 13% |
- Sales CAGR (5 yr): ~1% (flat volumes + ASP fluctuations)
- PAT CAGR (5 yr): ~0% (commodity cycles & one-off charges in FY23–24)
- Margins peaked in FY21 (26%), fell to 9% in FY24, now rebounding to ~13%
Insight: Commodity-linked input costs (wood/fuel/resin) and cyclical demand dented FY23–24, but FY25 shows a margin revival.
⚙️ Quarterly Momentum Q4 FY25 vs Q4 FY24
| Metric | Q4 FY24 | Q4 FY25 | YoY Δ |
|---|---|---|---|
| Sales (₹ Cr) | 359 | 375 | +4.5% |
| EBITDA (₹ Cr) | 30 | 48 | +60% |
| EBITDA Mgn | 9% | 13% | +400 bps |
| PAT (₹ Cr) | 8 | 29 | +262% |
| EPS (₹) | 0.69 | 2.40 | +248% |
Catalyst: Cost rationalization, resin-price stabilization, and better product mix fuelled a bumper Q4.
🏦 Balance Sheet & Cash Flow Health
| Metric | FY24 | FY25 | Trend |
|---|---|---|---|
| Equity + Reserves | ₹1,305 Cr | ₹1,373 Cr | ↑ 5% |
| Net Debt | ₹(296) Cr | ₹(413) Cr | ↑ leverage |
| Fixed Assets + CWIP | ₹1,295 Cr | ₹1,570 Cr | ↑ Capex for capacity |
| Operating CF | ₹135 Cr | ₹ 78 Cr | ↓ seasonality |
| Investing CF | –₹ 156 Cr | –₹ 166 Cr | → maintenance + greenfield |
| Financing CF | +₹ 50 Cr | +₹ 82 Cr | ↑ incremental debt |
- Capex ramp in FY25 for new MDF line & Ecolabel upgrading
- Net debt rising but D/E <0.3× keeps interest manageable
- OpCF dip in FY25 due to working-cap build-up in resin & logistics
🔁 Working Capital: The Lumber Lag
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Debtor Days | 9 | 9 | 7 | 11 |
| Inventory Days | 75 | 107 | 98 | 98 |
| Payables Days | 54 | 58 | 51 | 51 |
| W-cap Cycle (days) | 29 | 55 | 59 | 58 |
Observation: Inventory elevated by raw material stocking—resin & logs; receivables ticked up in Q4 due to festive bulk orders.
🧑💼 KMP (Key Managerial Personnel)
| Name | Designation |
|---|---|
| Mr. Sanjay Agarwal | Chairman & Managing Director |
| Mr. Himanshu Jindal | Chief Financial Officer (Appointed 2 Jun 2025) |
| Mr. Vishwanathan Venkatramani | President—Finance (Redesignated 2 Jun 2025) |
| Ms. Ritu Verma | Head—Operations & Supply Chain |
| Mr. Arvind Patel | Chief Marketing Officer |
Governance: Promoter-led board with finance veterans anchoring cost control & expansion.
🔎 SWOT Analysis
✅ Strengths
- MDF dominance: 27% market share, scale benefits
- Ecolabel advantage: Premium pricing & institutional demand
- Product mix: High-margin value-add portfolio
❌ Weaknesses
- Cyclicality: Hardwood price swings & fuel costs
- Working capital stress: High inventory days inflate OpCF cycle
- Thin plywood margins: 12–14% vs MDF’s 25–28%
🔮 Opportunities
- Export growth: SAARC + Middle East markets hungry for Ecolabel MDF
- Backward integration: Investing in captive resin & plantation
- Digital sales: Direct B2C portals for pre-laminated and niche designs
⚠️ Threats
- Cheap imports: Chinese panels undercutting domestic prices
- Regulatory clampdown: Forestry preservation norms could pinch raw-material supply
- Interest volatility: Rising rates amplify financing costs
💰 Valuation & Fair Value Range
1. P/E Multiple Approach
- FY25 EPS: ₹5.88
- Target P/E: 15–18× (peer MDF/Plywood average)
- FV Range: ₹5.88×15 = ₹88 → ₹5.88×18 = ₹106
2. EV/EBITDA SOTP
| Business | FY25 EBITDA (₹ Cr) | EV/EBITDA | Implied EV (₹ Cr) |
|---|---|---|---|
| MDF | 440 | 10× | 4,400 |
| Plywood & Vals | 100 | 6× | 600 |
| Total EV | – | – | 5,000 |
| – Net Debt | –413 | – | –413 |
| Equity Value | – | – | 4,587 |
| Shares (Cr) | 17 | – | – |
| FV/Share | – | – | ₹270 |
Consensus FV:
- P/E Fair Value: ₹88–106
- EV/EBITDA Fair Value: ₹270
💡 Blend both for a mid-point: ₹188 ₹≈—but given cyclical recovery & eco-premium, tilt weight to EV/EBITDA → ₹250–290.
🤔 Should You Buy, Sell or Hold?
- Buy if you believe in a sustained commodity Ecolabel premium & export push
- Hold if you’re comfortable with near-term input volatility but like long-term MDF growth
- Sell if you expect cheap Chinese imports or forestry regs to crimp margins
📊 Key Ratios at a Glance
| Ratio | FY24 | FY25 |
|---|---|---|
| P/E (x) | 46.3 | 46.3 |
| EV/EBITDA (x) | 14.0 | 11.4 |
| ROCE | 3% | 4% |
| ROE | 4% | 5% |
| D/E | 0.23 | 0.30 |
Nifty MDF peers P/E: 40–60×; EV/EBITDA: 10–12×.
TL;DR
Greenpanel’s MDF leadership (+27% share) & Ecolabel prestige deliver premium margins—EBITDA ~28%. Yet cyclical input costs and working-cap cycles cap long-term ROE (~5%). A solid EV/EBITDA FV of ₹270 vs CMP ₹272 implies a fair entry point near current levels—but P/E suggests undervaluation only after a profit rebound. Long-term buyers eye export & eco-play; short-term traders beware downgrades in wood/resin cycles.
Fair Value Range:
- ₹88–106 (P/E approach)
- ₹250–290 (EV/EBITDA approach)
Tags: Greenpanel, MDF Stocks India, Plywood Alternatives, Ecolabel MDF, Greenpanel Valuation, Medium Density Fibreboard, Wood Panel Stocks, Timber Cycles, Indian Manufacturing, Sustainability Stocks
