Greenpanel Industries Ltd. has received an “Accumulate” rating from brokerage firm Investec, which has set a target price of Rs. 260 per share.
The target implies a potential upside of 34.02 percent from the stock’s previous closing price of Rs. 194.
At the time of writing, the stock was trading at Rs. 195.50, up nearly 0.77 percent. The company had a market capitalization of Rs. 2,397.37 crore.
Investec positive on growth strategy
Investec said Greenpanel’s management is placing greater emphasis on volumes and market share.
The brokerage believes that approach can strengthen the company’s position over the long term. It expects margin expansion to remain under pressure in the near term.
Greenpanel’s valuation also looks attractive, according to Investec. The stock is trading at around 1.2 times market capitalization to replacement cost.
Profit growth, however, may take time. Investec expects improvement to be gradual.
It added that returns could be volatile. The brokerage said the investment case suits investors with a higher risk appetite and a longer time horizon.
FY26 volume performance
Greenpanel expanded its MDF manufacturing capacity during FY26.
Key operating numbers were:
- Annual MDF capacity increased to 8,91,000 cubic meters (CBM) from 6,61,899 CBM in FY25.
- Production rose 14.5 percent to 4,96,025 CBM.
- Domestic sales volume climbed to 4,29,475 CBM, compared with 3,67,371 CBM a year earlier.
- Export sales volume stood at 65,778 CBM, against 71,181 CBM in FY25.
- Total sales volume rose to 4,95,252 CBM from 4,38,551 CBM.
Capacity utilisation declined after the expansion. Even so, higher production and sales helped the company strengthen its presence in the MDF market.
Business profile
Greenpanel Industries manufactures and markets wood-based interior products.
Its portfolio includes:
- Medium-density fibreboards (MDF)
- High-density fibreboards (HDF)
- Plywood
- Decorative veneers
- Wooden flooring
The company supplies products for residential, commercial and institutional interiors. It describes itself as India’s No. 1 MDF company and the country’s largest wood panel manufacturer.
Q4 FY26 results
Revenue rose in the March quarter.
Q4 FY26 numbers:
- Revenue increased to Rs. 398.93 crore from Rs. 374.51 crore in Q4 FY25, a rise of 6.52 percent.
- Net profit fell to Rs. 1.37 crore from Rs. 29.39 crore a year earlier, a decline of 95.34 percent.
Financial metrics
Over the last five years, revenue has grown at a CAGR of 9 percent.
Other key ratios are:
- ROCE: -0.40 percent
- ROE: -2.13 percent
- EPS: Rs. -2.38
- Debt-to-equity ratio: 0.27x
TL;DR:
Investec has retained an “Accumulate” rating on Greenpanel Industries and set a target price of Rs. 260. The brokerage is positive on the company’s focus on volume growth and market share, though it expects profit recovery to remain slow.
AI summary:
- Investec retained an “Accumulate” rating on Greenpanel.
- Target price of Rs. 260 implies 34.02% upside.
- FY26 saw higher capacity, production and sales volumes.
- Q4 FY26 revenue rose 6.52%, while profit dropped sharply.
- Investec expects gradual profitability improvement.
