🪞 At a Glance

Greenlam Industries is India’s second-largest player in laminates and decorative surfaces, offering products from kitchen panels to engineered wood flooring. The stock is down ~14% YoY, and despite solid sales growth, margins and profits are slipping. Expansion into Europe and a new particle board venture are its next big bets—but ROE and valuations are currently saying, “bhai, thoda ruk ja.”

1. 🪜 Introduction with Hook

When your kitchen’s backsplash looks fancier than your portfolio, chances are someone like Greenlam had a role to play.

But while its laminates look smooth, its financials? Not so much lately.

• 🏭 India’s #2 laminate player (after Century Ply)
• 🌍 Aggressively expanding into Europe, Bangladesh, Egypt, Spain (subsidiaries everywhere!)
• 🧾 Sales up 50% in 3 years, but profit down by half
• 💰 P/E of 92, ROE of just 6%—the maths is not mathing

2. 🧱 Business Model (WTF Do They Even Do?)

They sell surfaces that look good—no jokes here.

💡 Product Segments:

• Laminates & Compact Panels (kitchens, restrooms, facades)
• Veneers & Engineered Flooring
• Plywood & Doors
• NEW: Particle Boards (production started Jan 2025)

Essentially, if you’re redoing your interior and you’ve watched one too many Pinterest reels—this is your supplier.

3. 💰 Financials Overview – Profit, Margins, ROE, Growth

• 💸 Sales growth = Great.
• 😬 Margins = Flat.
• 🫠 Net profit = DOWN 50% YoY in FY25.

4. 🔍 Valuation – Is It Cheap, Meh, or Crack?

• P/E: 92x — Like it’s Apple, not plywood.
• P/BV: 5.58x — Pricey for this segment.
• Market Cap: ₹6,300 Cr
• Fair Value Estimate: ₹165–₹190

📉 Using 15x FY26E EPS of ₹12.5 (assuming recovery), FV range is:

₹165 – ₹190
(vs. CMP ₹246) → It’s priced like a Ferrari, delivering like a Maruti Celerio lately.

5. 🍳 What’s Cooking – News, Triggers, Drama

🛠️ Major Capex in particle boards (commercial production began Jan 2025)

🪵 New Subsidiaries in Germany, Spain, Egypt, and Bangladesh

🧾 1:1 Bonus Shares issued in March 2025

📉 June 2025 Result: Net profit ₹1.47 Cr (DOWN 96% YoY) 😵

📊 Management cited:

• Rising raw material costs
• Higher depreciation (new plant)
• High interest costs (₹20 Cr quarterly interest!)

6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?

💣 Debt almost quadrupled in 3 years.
🧨 CWIP peaked at ₹611 Cr in FY24.

They’re clearly betting big on the new product lines.

7. 💸 Cash Flow – Sab Number Game Hai

🔻Negative FCF for 2 years straight.
👷 Heavy expansion = heavy spending.

8. 📊 Ratios – Sexy or Stressy?

📉 ROCE has halved.
🧂 Inventory days remain high = working capital pain.

9. 📈 P&L Breakdown – Show Me the Money

• Q1 FY25 Profit: ₹1.47 Cr (YoY -96%)
• Quarterly Sales: ₹682 Cr
• OPM: Down to 9.4% from 13.4% a year ago
• Depreciation: ₹33 Cr this quarter (from ₹25 Cr YoY)
• Interest Cost: ₹20 Cr (up 3x in 2 years)

👉 Expansion is dragging down the P&L. FY26 needs to justify this pain.

10. 🧑‍🤝‍🧑 Peer Comparison – Who Else in the Game?

🧠 Stylam and Greenply look way more efficient on ROCE, ROE.
💰 Greenlam has the highest P/E in the segment, but lowest profitability.

11. 📦 Miscellaneous – Shareholding, Promoters

• Promoters: 50.98% (stable)
• FII Holding: Up from 1.28% → 1.77%
• Public Shareholding: ~31%
• Bonus Share Issue: Mar 2025 (1:1)
• Equity Doubled: From ₹13 Cr → ₹26 Cr

😬 EPS halved post-bonus, hurting perceived valuation even more.

12. 📣 EduInvesting Verdict™

“Surface-level glam, deep-core jam.”

Greenlam’s charts look like your interior designer’s catalog—perfectly curated. But behind the scenes, margin pressure, high debt, and expansion pains are building like bad feng shui.

Unless the new chipboard and international ventures start contributing meaningfully, this one’s looking more like Veneer without Value than a compounder.

👀 FV Range: ₹165–₹190 (based on 15x FY26E EPS)

✍️ Written by Prashant | 📅 11 July 2025
Tags: Greenlam Industries, Laminates, Stylam, Greenply, Century Ply, Capex Stocks, Smallcap Furniture, Interior Stocks, Plywood Sector, Particle Board, Decorative Surfaces