At a Glance
Greenply Industries kicked off FY26 with a whimper rather than a bang. Revenue in Q1 crept up 2.9% YoY to ₹601 Cr, while PAT at ₹28 Cr barely held its ground. Plywood volumes fell 3.1%—because why not blame the monsoon or real estate lull—while MDF revenue rose 11.7%, saving the quarter from a total disaster. To spice things up, a new CFO has joined, and the company has issued a ₹26.5 Cr corporate guarantee for its subsidiary. Investor confidence? Jury’s still out.
1. Introduction
Greenply, the plywood king with a 26% share of India’s organized market, finds itself in a strange spot. It’s neither the dirt-cheap small-cap story nor a glamourous growth rocket. Instead, it sits on the fence: expensive P/E (50x), low ROE (~12%), and a market that yawns at single-digit growth. The Q1 results screamed “we’re stable but sleepy,” with volume dips offset by MDF uptick. The new CFO entry adds some boardroom drama, but for now, investors just have a plank to sit on.
2. Business Model (WTF Do They Even Do?)
Greenply’s business is as straightforward as a carpenter’s saw:
- Plywood & Blockboards: Its bread, butter, and the occasional jam (core business).
- Decorative Veneers & Specialty Products: High-margin niche offerings.
- PVC Products: A relatively small segment but growing.
Margins depend heavily on raw material (timber) costs and housing demand cycles. Unlike its cousin Century Ply, Greenply doesn’t have diversified value-add yet.
3. Financials Overview
- Q1 FY26 Revenue: ₹601 Cr (+2.9% YoY)
- EBITDA: ₹52 Cr (EBITDA margin 9%)
- PAT: ₹28 Cr (-25% YoY)
- EPS: ₹2.28
- FY25 Revenue: ₹2,488 Cr
- FY25 PAT: ₹92 Cr
Margins continue to wobble around 8–9%, a far cry from Stylam’s 18% OPM.
4. Valuation
Using three methods:
- P/E: EPS ₹7.34 × 20 = ₹147
- P/B: BV ₹64.8 × 3 = ₹194
- DCF: Even with optimistic housing cycles, fair value hovers around ₹200–₹240.
Fair Value Range: ₹180 – ₹240
CMP ₹335 looks like buying a plywood sheet at solid teakwood prices.
5. What’s Cooking – News, Triggers, Drama
- CFO Shuffle: Sanjiv Keshri takes over—fresh eyes, fresh balance sheet spin?
- Corporate Guarantee: ₹26.5 Cr issued for subsidiary—minor but worth noting.
- Volume Trends: Plywood down, MDF saving grace.
- Housing Demand: Government infra push could revive demand later in FY26.
6. Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 1,680 | 1,663 | 1,952 |
| Liabilities | 1,048 | 966 | 1,156 |
| Net Worth | 644 | 709 | 808 |
| Borrowings | 695 | 549 | 515 |
Remark: Borrowings dropping, but liabilities rising—classic juggling act.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 62 | 111 | 219 |
| Investing | -410 | -144 | -147 |
| Financing | 318 | 47 | -83 |
Commentary: Operations generate cash; investing burns it; financing oscillates like a pendulum.
8. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 11% | 11% | 12% |
| ROCE | 11% | 11% | 12% |
| P/E | 50x | 48x | 50x |
| PAT Margin | 5% | 3% | 4% |
| D/E | 0.66 | 0.49 | 0.45 |
Verdict: Sexy valuation? Stressy returns.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 1,663 | 2,180 | 2,488 |
| EBITDA | 133 | 185 | 204 |
| PAT | 91 | 70 | 92 |
Commentary: PAT jumped in FY25, but still modest relative to valuation.
10. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Century Plyboard | 4,528 | 193 | 85 |
| Greenlam Industries | 2,569 | 66 | 93 |
| Greenply Industries | 2,488 | 92 | 50 |
| Stylam Industries | 1,025 | 122 | 25 |
Commentary: Century and Greenlam charge premium P/Es; Greenply is “less insane” but still overpriced.
11. Miscellaneous – Shareholding, Promoters
- Promoters: 51.7% (stable)
- FIIs: 4.5% (down from 5.4%)
- DIIs: 32.4%
- Public: 11.4%
Stable promoter holding, but FII interest waning.
12. EduInvesting Verdict™
Greenply remains a solid mid-cap with strong market presence but mediocre financial mojo. The plywood business is cyclical, margins thin, and valuation looks stretched. MDF expansion is the only bright spot. The CFO reshuffle and corporate guarantee are minor ripples but worth monitoring.
SWOT Snapshot:
- Strengths: Market leader, diversified products, strong brand.
- Weaknesses: High P/E, low margin growth, cyclicality.
- Opportunities: Housing revival, MDF segment growth.
- Threats: Raw material volatility, imports, competitive pricing.
For investors, Greenply is like premium plywood—durable but overpriced.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Greenply Industries, Plywood Stocks, Q1 FY26 Results
