Mehabe score: 4 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Greenlam Industries is engaged in the business of manufacturing laminates, decorative veneers and allied products through its factories at Behror and Nalagarh and branches and dealers network spread all over the country.Site:GREENLAMMain Symbol:GRNLAMIND
Stock trades at 1353.0, above its 50dma 1222.86. It also trades above its 200dma 1008.74. The stock remains bullish on techicals
The 52 week high is at 1460.00 and the 52week low is at 585.00
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– The company has delivered a poor sales growth of 3.10% over past five years.
Competition
– The industry trades at a mean P/E of 28.2x. Jubilant Ingrevia trades at the industry’s max P/E of 158.04x. GREENLAM trades at a P/E of 44.3x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. GREENLAM has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 15.1%. The max 1- month return was given by C D S L: a return of 39.3 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 415.0 cr compared to Rs 324.0 cr for period ended Mar 2020, a rise of 28.1%
Operating Profits reported at Rs 67.0 cr for period ended Mar 2021 vis-vis 45.0 for period ended Mar 2020 .
Operating Margins expanded 225.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 12.82 compared to Rs 13.24 for previous quarter ended Dec 2020 and Rs 8.99 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1200.0 cr for period ended Mar 2021 vis-vis sales of Rs 1321.0 cr for the period ended Mar 2020, a fall of 10.1%. The 3 year sales cagr stood at 1.6%.
Net Profit reported at Rs 74.0 cr for period ended Mar 2021 vis-vis sales of Rs 87.0 cr for the period ended Mar 2020, falling 17.6%.
Company recorded a Net Profit CAGR of 4.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 213.0 cr for period ended Mar 2021 vis-vis Rs 96.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 89% on a 1 Year basis vis-vis a return of 13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -9% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is -15% vis-vis a compounded profit growth of 5% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 1.33% vis-vis 1.28% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 26.97% vis-vis 27.0% for Mar 2021
Conclusion
– – The company has delivered a poor sales growth of 3.10% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 1222.86 and is trading at 1353.0, thus bullish price action wise.
