Rs 195 to Rs 562: This stock turned into a multibagger in three years; down 10% from record high

Shares of multibagger Greenlam Industries have delivered multibagger returns to investors in the last three years. The plywood stock, which closed at Rs 195 on April 16, 2021 rose to Rs 562.05 on April 16, 2024), clocking 187.61% returns during the period. In comparison, Sensex has risen 49.38% in three years. The stock has fallen 10% from the record high of Rs 626.15 reached on November 28, 2023. In the previous session, Greenlam Industries stock closed 2.31% higher at Rs 562.05 on BSE. The equity market is closed on account of Ram Navami today.

Earlier, the stock opened lower at Rs 546.10 against the previous close of Rs 549.35 on BSE. The woodpanel industry stock has risen 83% in a year and gained 37.42% in six months.

Market cap of the firm rose to Rs 7170 crore. Total 1386 shares changed hands amounting to a turnover of Rs 7.72 lakh on BSE.

In terms of technicals, the relative strength index (RSI) of Greenlam Industries stands at 57.8, signaling the stock is trading neither in the oversold nor in the overbought territory. Greenlam Industries shares stand higher than the 5 day, 10 day, 20 day 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Antique Broking has a price target of Rs 670 for Greenlam Industries, an upside of 20% from the current level.

JM Financial has a hold rating on the plywood stock with a target of Rs 600. Revenue is expected to rise at a CAGR of 21%  from FY23 to FY26 expected, said the brokerage adding that it is likely to post a EBITDA of 12.9%, 12.6% and 13.8%, in FY24, FY25 and FY26, respectively. 

Five promoters held 50.98 per cent stake in the firm and 18,017 public shareholders owned 49.02 per cent stake or 6.25 crore shares for the quarter ended December 2023. Of these, 17,145 lakh resident individuals held 48.62 lakh shares or 3.81% stake with capital up to Rs 2 lakh. Only ten shareholders with 11.95% stake or 1.52 crore shares held capital above Rs 2 lakh for the quarter ended December 2023.   

Greenlam Industries reported a 12% rise in net revenues to Rs 563.4 crore for the quarter ended December 31, 2023 on a year on year basis. The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIDTA) in the third quarter of the previous fiscal stood at Rs 71.1 crore, climbing  29.8% year-over-year (YoY). However, net profit slipped 11.8% YoY to Rs 25.3 crore in the December 2023 quarter.

Greenlam Industries is among the world's leading laminate manufacturers which is engaged in the business of manufacturing laminates, decorative veneers and allied products through its factories at Behror and Nalagarh. The company manufactures compact panels, cladding solutions, restroom cubicle / locker solutions, kitchen solutions, decorative veneers, engineered wooden flooring, staircase solutions and engineered wooden door sets, in addition to a range of decorative laminates.