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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 538979 | NSE: GREENLAM

Fundamental Analysis of Greenlam Industries Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:32 pm

Market Cap 7,781 Cr.
Current Price 610
High / Low662/388
Stock P/E56.4
Book Value 84.4
Dividend Yield0.27 %
ROCE12.1 %
ROE13.5 %
Face Value 1.00
PEG Ratio5.98

Competitors of Greenlam Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Airo Lam Ltd 214 Cr. 143197/80.425.9 48.20.00 %13.0 %12.1 % 10.0
Rushil Decor Ltd 849 Cr. 320407/26119.7 2040.16 %11.6 %9.51 % 10.0
Archidply Decor Ltd 51.2 Cr. 92.0106/68.01,708 91.20.00 %4.13 %0.06 % 10.0
Alfa Ica (India) Ltd 24.2 Cr. 60.075.7/43.314.4 53.90.00 %10.6 %8.02 % 10.0
Ambition Mica Ltd 4.40 Cr. 2.954.95/2.82 8.380.00 %7.00 %% 10.0
Industry Average228.56 Cr123.59353.6081.140.03%9.27%5.94%10.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales335415336454450463471518504534515604563
Expenses277348298408396414420464449460451528492
Operating Profit58673846535050545574647671
OPM %17%16%11%10%12%11%11%10%11%14%12%13%13%
Other Income2-92-0212564463
Interest43334356667914
Depreciation14141414151515151617171924
Profit before tax42402228363333383855445335
Tax %24%23%23%25%25%22%25%23%26%16%26%26%29%
Net Profit32311721272625292946323925
EPS in Rs2.652.561.441.722.232.122.052.302.263.632.593.071.98

Last Updated: June 7, 2024, 8:51 am

Quarterly Chart

Greenlam Industries Ltd Profit & Loss

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales09261,0301,0761,1451,2811,3211,2001,7032,0262,156
Expenses08339009379961,1221,1421,0261,5161,7931,887
Operating Profit-093130139149159179174188233269
OPM %10%13%13%13%12%14%14%11%12%12%
Other Income0232214-541820
Interest033352918172217142329
Depreciation033353736375256586370
Profit before tax-02862769710610896119164190
Tax %0%32%40%34%33%27%20%23%24%22%
Net Profit-01938506577877491128146
EPS in Rs-0.201.603.124.115.356.397.186.117.5210.1111.72
Dividend Payout %0%6%6%7%9%9%11%16%16%15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)100.00%31.58%30.00%18.46%12.99%-14.94%22.97%40.66%
Change in YoY Net Profit Growth (%)0.00%-68.42%-1.58%-11.54%-5.47%-27.93%37.92%17.69%

Growth

Compounded Sales Growth
10 Years:%
5 Years:12%
3 Years:24%
TTM:14%
Compounded Profit Growth
10 Years:159%
5 Years:12%
3 Years:19%
TTM:11%
Stock Price CAGR
10 Years:%
5 Years:32%
3 Years:39%
1 Year:41%
Return on Equity
10 Years:16%
5 Years:15%
3 Years:14%
Last Year:13%

Last Updated: June 17, 2024, 3:02 pm

Greenlam Industries Ltd Balance Sheet

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital012121212121212121313
Reserves-02082332863444164895616429561,012
Borrowings0393365298252270294307398628949
Other Liabilities0230260194216229309291324450528
Total Liabilities08428717918239271,1041,1721,3762,0462,503
Fixed Assets0328353324331330429413468517884
CWIP094512217189380461
Investments0000000106161242181
Other Assets0505514462492575658634739907976
Total Assets08428717918239271,1041,1721,3762,0462,503

Reserves and Borrowings Chart

Greenlam Industries Ltd Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 0118116185109649621371175
Cash from Investing Activity 0-100-53-22-38-57-54-154-136-541
Cash from Financing Activity 0-12-63-160-69-6-22-7162366
Net Cash Flow05-032120-12-30

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow0.00-300.00-235.00-159.00-103.00-111.00-115.00-133.00-210.00-395.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days726554545038412826
Inventory Days160168147156163202229195174
Days Payable129128839686911359991
Cash Conversion Cycle103105117115128149135123108
Working Capital Days946679778888888058
ROCE %20%16%17%19%19%18%15%14%14%

Financial Efficiency Indicators Chart

Greenlam Industries Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters54.90%54.90%54.90%53.90%53.90%53.90%51.22%51.22%51.22%51.22%51.22%51.22%
FIIs0.82%1.28%1.33%1.55%1.59%1.63%1.44%1.46%1.44%1.44%1.45%1.37%
DIIs17.27%16.82%16.80%14.86%14.22%14.19%18.46%13.37%13.10%15.70%15.60%15.58%
Public27.02%27.00%26.97%29.70%30.29%30.28%28.88%33.95%34.25%31.64%31.71%31.81%
No. of Shareholders5,8145,9606,1926,35110,95812,13513,20213,51213,31612,88914,06014,278

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan8,757,5040.79473.082,725,7522024-06-17221.29%
DSP Small Cap Fund2,725,7521.07147.252,725,7522024-06-170%
Nippon India Small Cap Fund2,211,4380.26119.462,725,7522024-06-17-18.87%
HDFC Small Cap Fund - Regular Plan1,777,5210.3496.022,725,7522024-06-17-34.79%
Canara Robeco Small Cap Fund839,6730.4745.362,725,7522024-06-17-69.19%
Motilal Oswal Nifty Microcap 250 Index Fund88,5920.564.792,725,7522024-06-17-96.75%
Groww Nifty Total Market Index Fund3830.020.022,725,7522024-06-17-99.99%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.005.005.00
Basic EPS (Rs.)10.8510.277.5230.5635.91
Diluted EPS (Rs.)10.8510.277.5230.5635.91
Cash EPS (Rs.)17.6415.0612.3553.5557.66
Book Value[Excl.RevalReserv]/Share (Rs.)84.4176.3054.28237.79207.48
Book Value[Incl.RevalReserv]/Share (Rs.)84.4176.3054.28237.79207.48
Revenue From Operations / Share (Rs.)180.79159.53141.15497.00547.13
PBDIT / Share (Rs.)24.8019.7516.1074.9375.68
PBIT / Share (Rs.)17.9714.7711.2551.9153.93
PBT / Share (Rs.)14.5012.929.8739.7644.88
Net Profit / Share (Rs.)10.8210.087.5130.5335.91
NP After MI And SOA / Share (Rs.)10.8510.117.5230.5635.91
PBDIT Margin (%)13.7112.3811.4015.0713.83
PBIT Margin (%)9.939.257.9710.449.85
PBT Margin (%)8.018.106.997.998.20
Net Profit Margin (%)5.986.315.316.146.56
NP After MI And SOA Margin (%)6.006.335.326.146.56
Return on Networth / Equity (%)12.8413.2513.8612.8617.31
Return on Capital Employeed (%)12.4513.4815.4517.0619.10
Return On Assets (%)5.056.256.556.267.77
Long Term Debt / Equity (X)0.600.360.240.140.16
Total Debt / Equity (X)0.920.580.520.380.51
Asset Turnover Ratio (%)0.961.221.251.011.25
Current Ratio (X)1.211.521.691.541.50
Quick Ratio (X)0.520.740.690.680.64
Inventory Turnover Ratio (X)1.992.162.241.682.14
Dividend Payout Ratio (NP) (%)0.0011.2713.300.0019.49
Dividend Payout Ratio (CP) (%)0.007.558.080.0012.14
Earning Retention Ratio (%)0.0088.7386.700.0080.51
Cash Earning Retention Ratio (%)0.0092.4591.920.0087.86
Interest Coverage Ratio (X)7.1410.6813.8010.698.37
Interest Coverage Ratio (Post Tax) (X)4.126.457.626.094.97
Enterprise Value (Cr.)7357.014354.164709.132459.751383.56
EV / Net Operating Revenue (X)3.192.152.762.051.05
EV / EBITDA (X)23.2617.3624.2413.607.57
MarketCap / Net Operating Revenue (X)2.771.882.571.880.87
Retention Ratios (%)0.0088.7286.690.0080.50
Price / BV (X)5.933.926.693.932.31
Price / Net Operating Revenue (X)2.771.882.571.880.87
EarningsYield0.020.030.020.030.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 644.36

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 5.63% compared to the current price 610

Intrinsic Value: 705.16

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 15.60% compared to the current price ₹610

Last 5 Year EPS CAGR: 9.44%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.20%, which is a positive sign.
  2. The company has higher reserves (467.91 cr) compared to borrowings (377.64 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (85.18 cr) and profit (94.82 cr) over the years.
  1. The stock has a high average Working Capital Days of 71.80, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 108.30, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Greenlam Industries Ltd:
    1. Net Profit Margin: 5.98%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 12.45% (Industry Average ROCE: 9.09%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 12.84% (Industry Average ROE: 6.22%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.12
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.52
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 56.4 (Industry average Stock P/E: 372.98)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.92
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Greenlam Industries Ltd. is a Public Limited Listed company incorporated on 12/08/2013 and has its registered office in the State of Assam, India. Company’s Corporate Identification Number(CIN) is L21016DL2013PLC386045 and registration number is 011624. Currently Company is involved in the business activities of Manufacture of other plywood products. Company’s Total Operating Revenue is Rs. 1559.19 Cr. and Equity Capital is Rs. 12.07 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Laminates2nd Floor, West Wing, Worldmark 1, Aerocity, New Delhi Delhi 110037investor.relations@greenlam.com
http://www.greenlamindustries.com
Management
NamePosition Held
Mr. Shiv Prakash MittalNon Executive Chairman
Mr. Saurabh MittalManaging Director & CEO
Ms. Parul MittalWhole Time Director
Mr. Sandip DasIndependent Director
Ms. Matangi GowrishankarIndependent Director
Mr. Yogesh KapurIndependent Director
Mr. Rahul ChhabraIndependent Director

FAQ

What is the latest fair value of Greenlam Industries Ltd?

The latest fair value of Greenlam Industries Ltd is ₹644.36.

What is the Market Cap of Greenlam Industries Ltd?

The Market Cap of Greenlam Industries Ltd is 7,781 Cr..

What is the current Stock Price of Greenlam Industries Ltd as on 23 June 2024?

The current stock price of Greenlam Industries Ltd as on 23 June 2024 is ₹610.

What is the High / Low of Greenlam Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Greenlam Industries Ltd stocks is 662/388.

What is the Stock P/E of Greenlam Industries Ltd?

The Stock P/E of Greenlam Industries Ltd is 56.4.

What is the Book Value of Greenlam Industries Ltd?

The Book Value of Greenlam Industries Ltd is 84.4.

What is the Dividend Yield of Greenlam Industries Ltd?

The Dividend Yield of Greenlam Industries Ltd is 0.27 %.

What is the ROCE of Greenlam Industries Ltd?

The ROCE of Greenlam Industries Ltd is 12.1 %.

What is the ROE of Greenlam Industries Ltd?

The ROE of Greenlam Industries Ltd is 13.5 %.

What is the Face Value of Greenlam Industries Ltd?

The Face Value of Greenlam Industries Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Greenlam Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE